What Is the Difference Between a Will and a Living Trust in Kentucky?

Two of the most common estate planning tools are a will and a revocable living trust. Both let you decide who receives your property after you die, but they work in different ways. Here is a plain-English look at how they compare for Kentucky families.

What a Will Does

A will is a written set of instructions that takes effect at your death. It names who receives your property, who will serve as your executor, and, if you have minor children, who you would like to raise them.

Property that passes under a will generally goes through probate, the court-supervised process for settling an estate. Probate is not always difficult, but it is public, and it adds steps and time before your family can receive what you left them.

What a Living Trust Does

A revocable living trust is a legal arrangement you create during your lifetime. You transfer property into the trust, usually serve as your own trustee, and keep full control. You can change or cancel the trust whenever you wish.

When you pass away, the successor trustee you chose distributes the trust property according to your instructions. Because the trust, not you, owns that property, it can generally pass without probate.

Key Differences

Probate

A will usually requires probate. Property properly held in a living trust usually does not. Keep in mind that accounts with named beneficiaries and jointly owned property may pass outside probate either way.

Privacy

A probated will becomes part of the public court record. A trust generally remains private.

Incapacity

A will only speaks at death. A living trust can include instructions for managing your property if you become unable to do it yourself, allowing your successor trustee to step in without going to court.

Cost and Effort

A trust usually takes more work up front. It must be funded, meaning assets like your home must be retitled into the trust, often with a new deed. A will is typically simpler to prepare.

Do You Need Both?

Most people with a living trust also sign a “pour-over” will that sends any forgotten property into the trust, and that is still where parents name guardians for minor children. Everyone, whether they choose a will or a trust, should also have powers of attorney and a living will.

Which Is Right for You?

There is no single right answer. A will may be all you need if your estate is straightforward. A trust may make sense if you value privacy, own real estate, have a blended family, or want a detailed plan for incapacity. Learn more about revocable and irrevocable trusts or read our overview of estate planning in Northern Kentucky.