Trustor and trustee enter into an agreement to create a revocable living trust. The purpose of the creation of the trust is to provide for the convenient administration of the assets of the trust without the necessity of court supervision in the event of the trustor's incapacity or death. Other provisions of the trust document include: trust assets, disposition of income and principal, and administration of the trust assets after the death of the trustor.
A Kentucky Living Trust — Revocable is a legal document used in estate planning that allows an individual (trust or granter) to transfer their assets into a trust during their lifetime, while maintaining control over those assets. It is revocable, which means the trust or can make changes or completely revoke the trust at any time. This type of living trust is commonly used in Kentucky for various purposes, including probate avoidance, privacy, and estate tax planning. By transferring assets into the trust, they no longer belong to the individual but are instead owned by the trust. The trust or can still use, manage, and benefit from the assets as the trustee of the trust. There are different types of Kentucky Living Trust — Revocable depending on specific needs and circumstances: 1. Revocable Living Trust: This is the most basic type of living trust where the trust or places their assets into the trust and retains complete control over them as the trustee. It provides flexibility as the trust or can modify or revoke the trust as needed. 2. A-B Trust or Marital and Residual Trust: This type of trust is commonly used by married couples to maximize estate tax benefits. It consists of two separate trusts — trust A (marital trust) and trust B (residual or bypass trust). Upon the death of the first spouse, trust A becomes irrevocable while providing income or support for the surviving spouse. Trust B holds the remaining assets and is not subject to estate taxes upon the surviving spouse's death. 3. Charitable Remainder Trust: This type of trust allows a person to create an income stream for themselves or their beneficiaries while supporting a charitable cause. The trust assets are eventually transferred to a designated charity upon the trust or's death. 4. Special Needs Trust: This trust is established for individuals with disabilities to preserve their eligibility for government benefits while ensuring that their financial, medical, and living needs are met. It allows the trust or to provide supplemental support without disqualifying the beneficiary from means-tested programs. 5. Dynasty Trust: Dynasty trusts are designed to provide assets and financial benefits for multiple generations. They can help minimize estate and gift taxes and protect family wealth from various risks like lawsuits or creditors. Overall, a Kentucky Living Trust — Revocable is a valuable tool in estate planning as it enables individuals to maintain control over their assets, avoid probate, and potentially reduce estate taxes. It is crucial to consult with an estate planning attorney to determine the most suitable type of trust based on individual needs and goals.A Kentucky Living Trust — Revocable is a legal document used in estate planning that allows an individual (trust or granter) to transfer their assets into a trust during their lifetime, while maintaining control over those assets. It is revocable, which means the trust or can make changes or completely revoke the trust at any time. This type of living trust is commonly used in Kentucky for various purposes, including probate avoidance, privacy, and estate tax planning. By transferring assets into the trust, they no longer belong to the individual but are instead owned by the trust. The trust or can still use, manage, and benefit from the assets as the trustee of the trust. There are different types of Kentucky Living Trust — Revocable depending on specific needs and circumstances: 1. Revocable Living Trust: This is the most basic type of living trust where the trust or places their assets into the trust and retains complete control over them as the trustee. It provides flexibility as the trust or can modify or revoke the trust as needed. 2. A-B Trust or Marital and Residual Trust: This type of trust is commonly used by married couples to maximize estate tax benefits. It consists of two separate trusts — trust A (marital trust) and trust B (residual or bypass trust). Upon the death of the first spouse, trust A becomes irrevocable while providing income or support for the surviving spouse. Trust B holds the remaining assets and is not subject to estate taxes upon the surviving spouse's death. 3. Charitable Remainder Trust: This type of trust allows a person to create an income stream for themselves or their beneficiaries while supporting a charitable cause. The trust assets are eventually transferred to a designated charity upon the trust or's death. 4. Special Needs Trust: This trust is established for individuals with disabilities to preserve their eligibility for government benefits while ensuring that their financial, medical, and living needs are met. It allows the trust or to provide supplemental support without disqualifying the beneficiary from means-tested programs. 5. Dynasty Trust: Dynasty trusts are designed to provide assets and financial benefits for multiple generations. They can help minimize estate and gift taxes and protect family wealth from various risks like lawsuits or creditors. Overall, a Kentucky Living Trust — Revocable is a valuable tool in estate planning as it enables individuals to maintain control over their assets, avoid probate, and potentially reduce estate taxes. It is crucial to consult with an estate planning attorney to determine the most suitable type of trust based on individual needs and goals.
