![]() ![]() How Much Does It Cost to Create a Living Trust in Kentucky? On the other hand, settlors of irrevocable trusts do give up control and ownership – and as a result, are off the hook for taxes. Also, the settlor does not give up ownership rights. The former is commonly preferred for its flexibility. In the case that the settlor (owner) was his own trustee, the successor trustee would step in.Īs alluded to earlier, there are revocable and irrevocable living trusts. When the settlor dies, it’s the trustee’s job to distribute assets as the settlor instructed. ![]() As mentioned earlier, the trustee can be the settlor if it’s a revocable trust, or it can be a grown child, brother, friend or lawyer - anyone you trust. The trustee, then, is the person who manages the trust. The primary aim of a living trust is to avoid probate, a court process that can take months and even years. The difference is that a living trust is also an entity that holds the property while the owner is alive. ![]() What Is a Living Trust?Ī living trust is like a will in that they are both legal documents that state where the property is to go when the owner dies. Again, using a lawyer or financial advisor ensures this is done correctly, though you can do the paperwork yourself. For things that can’t be titled, like jewelry or antiques, it’s enough to just list them in the trust declaration. Transfer your property into the trust: You can do this by putting deeds and titles in the name of the trust. Sign the trust document in front of a notary public: If it isn’t officially notarized by a notary recognized by the state of Kentucky then it may not stand as a legitimate trust.Ħ. But if doing this as cheaply is your priority, you can use an online program.ĥ. Create a trust agreement: Using an attorney will ensure your trust is set up correctly. If you choose yourself, you’ll also need to appoint a successor trustee for when you die.Ĥ. With revocable trusts, it can be you, or in the case of a joint trust, you and your spouse can be co-trustees. Name your trustee: A trustee is a person who will manage the trust. If you’re married, you may want a joint trust, though if you have separate assets and children from previous relationships, you may want two single trusts.ģ. Choose the type of living trust: You probably want it to be revocable as opposed to irrevocable so that you can remove assets, or cancel the whole trust in case you need to. But as long as you set up the trust, you may decide to put everything you can in the trust for simplicity’s sake.Ģ. ![]() Most likely, it’s real estate and business interests that you want to protect with a living trust. Other things like bank and brokerage accounts and life insurance policies can but don’t need to, as long as you designate your beneficiaries and set up your accounts to be payable or transferable on death. Identify what should go into the trust: Some assets can’t, such as 401(k) plans, IRAs and pensions. Here are the basic six steps you’ll need to take when you’re creating a living will in the state of Kentucky:ġ. Setting up a living trust is largely the same regardless of where you live in the U.S. ![]()
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