Differences Between a Will and a Living Trust in Kentucky

In Kentucky, estate planning will often mean that you create a will, a living trust, or sometimes – even both. In order for families to plan efficiently and minimize any complications after a loved one has passed, it’s important to understand the differences between the two. 

Whether your goals are to avoid probate, to manage assets, to protect beneficiaries, or to plan for incapacity, you must have a thorough understanding of wills and living trusts, so you know which tool is right for you. 

Read on to learn the key differences between a will and a living trust in Kentucky, so that you can make informed decisions. 

What is a Will?

A will is a legal document which contains instructions on how your property will be distributed after your death. Its key features under Kentucky law are:

• It must be in writing, and it must be signed by the testator and witnessed by two or more competent witnesses. 
• An executor – a personal representative – may be appointed to manage the estate.
• A guardian may be named if minor children are involved. 
• It becomes effective only after death. 

Wills are subject to probate – that is a court-supervised process which exists to validate the will, and to distribute assets. 

What is a Living Trust?

A living trust, also known as a revocable trust, is a legal arrangement per which assets are placed into a trust which is managed by a trustee during your lifetime. Its key features are:

• It becomes effective straight after its creation. 
• It can be revocable – that means, you can change it; or it can also be irrevocable – in which case, you can’t change it. 
• Assets in a trust will usually avoid probate, which means that the distribution between beneficiaries is faster. 
• A living trust provides privacy – its terms are not part of the public record like a will. 
• If the grantor becomes incapacitated, a living trust can include provisions for managing assets. 

Key Differences Between a Will and a Living Trust

Here’s a quick checklist to put in simple terms how a will differs from a living trust:

• Effective Date: For wills, it’s upon death, whereas for living trusts it’s immediately and during lifetime. 
• Probate: Wills are subject to probate, whereas living trusts typically avoid it. 
• Privacy: Wills are public record; living trusts are a private document. 
• Management During Incapacity: For wills, assets cannot be managed before death, whereas for living trusts, the trustee can manage assets if the grantor is incapacitated. 
• Cost and Complexity: Wills are usually less expensive and simpler; living trusts are complex and may have higher upfront costs. 

Some families opt for both a will and a living trust – the former for smaller items or guardianship designations, and the latter for major assets. 

When to Consider a Living Trust

A living trust may be the more appropriate option for the following:

• If you have large or complex estates, with multiple properties. 
• If you want to avoid probate court delays.
• If you require asset management during incapacity. 
• If you plan to provide for minor children, or special needs beneficiaries.
• If your family values privacy in asset distribution. 

When to Seek Legal Help

Kentucky estate law is difficult to understand, complex to handle, and daunting to navigate alone. Improper drafting may result in an invalidation of a will or trust. This is where you benefit from consulting an experienced estate planning attorney. They can help you with correct drafting procedures, advise you on asset titling and beneficiary designations, and simplify the process.

At Hoffman Walker & Knauf, we value your desire to create a legally solid estate plan, and we approach each case with dedication and utmost attention to detail. Whether you need a will, a living trust, or both, our seasoned attorneys can explain your options to you and help you make an informed decision. 

Contact us today, and let’s work together in protecting your assets whilst ensuring your family’s future is secure.