Create a Living Trust in Kentucky

A living trust can help your Kentucky estate avoid the costs and frustrations of probate court. Find out how you can get your own living trust in Kentucky.

Find out more about Living Trusts

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create a living trust in kentucky

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Updated on: February 6, 2024
Read time: 3 min

A living trust in Kentucky offers a variety of benefits in estate planning. A revocable living trust allows you to control assets during your lifetime and manage how they are disbursed after your death.

Living trusts in Kentucky

A Kentucky living trust can be created by anyone over age 18 of sound mind, called the settlor. The settlor decides what assets to place in the trust and names a trustee who will manage the assets. Anyone can be a trustee, but it is common to name yourself, with a successor trustee in place to step in after your death. You, as trustee, manage the assets for your own benefit during life. When the settlor dies, the successor trustee distributes the assets to the beneficiaries in accordance with the terms of the trust. A revocable trust can be altered or deleted during the settlor’s life. An irrevocable living trust becomes permanent when it is signed.

Creating a living trust in Kentucky allows the assets in the trust to pass outside of probate. Kentucky has not implemented the Uniform Probate Code, so its procedures can be complex. Probate can take many months to complete and involves the cost of an executor and an attorney. A simplified probate process is available only if there is a surviving spouse and the probate is worth $15,000 or less, or if there is no spouse and someone else pays at least $15,000 in preferred claims. For an estate of this small size, a trust would be more costly than the basic court procedure.

Do I need a living trust in Kentucky?

There are many reasons to consider a living trust Kentucky, one of which is the benefit of privacy. The trust is not public record, as a will and probate proceeding are. The terms of the trust, assets in it, and beneficiaries of it are never revealed and remain completely private.

A revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust and a conservatorship proceeding is likely unnecessary for you to have your financial life managed for your benefit.

Kentucky living trusts also provide the settlor with control over the assets and their distribution. During life, you can manage, give away, or use your assets as you normally would. You can live in your home and spend your money. You can remove and add assets to the trust at will. After your death, the trust controls how and when your beneficiaries receive your bequests. You can set specific dates or conditions for disbursement after your death. This is in contrast to a will, which distributes assets once probate concludes.

Living trusts and estate taxes in Kentucky

A living trust does not shield assets from estate and inheritance taxes. Kentucky does not apply an inheritance tax on assets left to spouses, children, grandchildren, parents, or siblings. Bequests to extended family, such as nieces and nephews, have only a $1,000 exemption from state inheritance tax. There is only a $500 exemption for bequests to anyone else. Currently the federal estate tax exemption stands at $5 million, with tax applied to estates in excess of that amount. A specialized trust called a QTIP trust (also known as an AB or marital trust) passes assets to your surviving spouse with no estate tax. A revocable living trust will not protect assets from Medicaid spend down or creditors.

How to create a living trust in Kentucky

To create a living trust in Kentucky, you must create the trust in writing and sign before a notary public. The next step is to fund the trust by transferring ownership of assets into the trust. A living trust is an important option to consider as you create your estate plan. A living trust might be beneficial for you.

Create a Kentucky living trust online through LegalZoom. LegalZoom living trusts include a pour-over will, transfer deeds, a document organizer, and more.

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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

54 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
56 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
62 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
70 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
72 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
78 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
86 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
86 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
93 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
96 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
104 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
104 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
113 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
131 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
139 days ago
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Quality Staff

I needed to revise my entire living trust and had put it off for years. Your staff member Eden walked me through the process with such patience and concern. Had I known it would be so easy, I would have never put it off this long. A testament to you quality staff.

Ady Filipescu
148 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
154 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
154 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
161 days ago
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Enjoyed working with Kevin to finalize…

Enjoyed working with Kevin to finalize our Living Trust language. His knowledge on this product certainly increases our confidence in the viability of the final document.

JOHN in CALIFORNIA
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