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Creating a revocable living trust gives you a legal document that will protect your property, including your bank accounts and any other assets in your estate. You should put your bank accounts in a living trust to ensure the funds are easily accessible for your beneficiaries when the time comes to inherit.

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.

What Assets Should Go Into a Trust? Bank Accounts. You should always check with your bank before attempting to transfer an account or saving certificate. Corporate Stocks. Bonds. Tangible Investment Assets. Partnership Assets. Real Estate. Life Insurance.

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.

A will may be the least expensive and most efficient choice for small estates with easily transferred assets and simple bequests. A trust without a will can present problems concerning assets outside the trust that become subject to intestacy laws. Larger and more complex estates may benefit by using both arrangements.

Class C. Anyone who doesn't fall into Class A or Class B—for example, cousins, friends, and corporations—is part of Class C. For Class C members, only $500 is exempt from Kentucky's inheritance tax. After that, the tax rate falls between 6% and 16%.

If you don't have many assets, aren't married, and/or plan on leaving everything to your spouse, a will is perhaps all you need. On the other hand, a good rule of thumb is to consider a revocable living trust if your net worth is at least $100,000.

Here are the cons: A living trust is more complex and typically more costly to set up, and you must retitle your assets in the name of the trust, which is also time-consuming. It doesn't offer any estate tax benefits or special asset protection.

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.