Add Comments Legal Kentucky Trust Forms For Free

Exempt beneficiaries under KRS 140.080 include spouse, children, stepchildren, grandchildren, parent, brother, and sister. Exempt organizations include educational, religious or other institutions, societies, or associations, whose sole purpose is to carry on charitable, educational, or religious work.

How to Avoid Inheritance Tax in Kentucky Give the assets to the beneficiaries as early as possible. This allows the appreciation of the assets to avoid the inheritance tax. Setting up specific types of trusts can allow your assets to be passed on without being subject to the inheritance tax.

Certain types of trusts can help avoid estate taxes. An irrevocable trust transfers asset ownership from the original owner to the trust beneficiaries. Because those assets don't legally belong to the person who set up the trust, they aren't subject to estate or inheritance taxes when that person passes away.

In Kentucky, if you die without a will, your spouse will inherit property from you under a law called "dower and curtesy." Usually, this means that your spouse inherits 1/2 of your intestate property. The rest of your property passes to your descendants, parents, or siblings.

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.

While it is an easier process, the simplicity of a Will does come with some drawbacks. For example, Wills offer somewhat limited control over the distribution of assets. They also most likely have to go through some sort of probate process after you pass away.

A living trust, unlike a will, can keep your assets out of probate proceedings. A trustor names a trustee to manage the assets of the trust indefinitely. Wills name an executor to manage the assets of the probate estate only until probate closes.

Trustee: The trustee (trust manager) must be 18 years of age or older, have mental capacity and willing to take on the duties associated with managing the trust. Notary: Kentucky requires a trust to be notarized for it to be considered legally valid.

The critical difference between these two estate planning options is when they go into effect. A will is a document that dictates the distribution of your estate upon your passing. However, a trust goes into effect upon signing. The assets placed in the trust no longer technically belong to you, but to the trust.