Originally published September 2015. Last updated March 2026.
A will is the default estate planning tool. But a revocable living trust does things a will can’t: skip probate, keep your affairs private, and give you more control over when and how your heirs receive their inheritance.
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What Is a Revocable Living Trust?
It’s a legal document that holds your assets during your lifetime and transfers them to your beneficiaries when you die, without going through probate court. “Revocable” means you can change or dissolve it anytime. “Living” means you create it while you’re alive.
You typically serve as both the trustee (manager) and the beneficiary during your lifetime. You name a successor trustee to take over when you die or become incapacitated.
Benefits of a Living Trust
- Avoids probate: Probate in Kentucky takes 6-12 months on average and costs 2-5% of the estate’s value. A trust bypasses this entirely. Your successor trustee can distribute assets in weeks, not months.
- Privacy: Wills become public record when they go through probate. Trusts don’t. Nobody can look up what you left to whom.
- Control over distribution: You can specify conditions. For example, a grandchild receives one-third at 25, one-third at 30, and the rest at 35. A will typically distributes everything at once.
- Incapacity protection: If you become incapacitated, your successor trustee manages your assets without a court-appointed conservatorship. This is one of the most overlooked benefits.
- Potential estate tax planning: For larger estates, certain trust structures (like A-B trusts or bypass trusts) can help both spouses use their full federal estate tax exemption ($13.99 million each in 2025).
Who Needs a Living Trust?
Not everyone. If you have a simple estate, a will plus beneficiary designations may be enough. A trust makes more sense if:
- You own real estate in multiple states (avoids probate in each state)
- You want to control the timing of distributions to heirs
- You value privacy
- You have minor children or beneficiaries who aren’t good with money
- You want to plan for incapacity without court involvement
How to Set One Up
- Work with an estate planning attorney to draft the trust document
- Transfer assets into the trust (retitle accounts, deeds, etc.)
- Name beneficiaries and a successor trustee
- Review and update every 3-5 years or after major life changes
The trust itself costs $1,500-$3,000 to establish with an attorney. That’s a fraction of what probate would cost on most estates.
FAQ
Does a living trust replace a will?
Not entirely. You still need a “pour-over will” to catch any assets that weren’t transferred into the trust during your lifetime. Those assets go through probate, but the will directs them into the trust.
Can creditors access assets in a revocable trust?
Yes. Because you retain control of the assets, they’re still considered yours for creditor purposes. An irrevocable trust offers creditor protection, but you give up control.
Is a living trust only for wealthy people?
No. The probate-avoidance and incapacity-protection benefits apply regardless of net worth. If you own a home and have retirement accounts, a trust is worth considering.
Schedule a free 20-minute consultation to discuss whether a living trust fits your estate plan.
R.L. Brown Wealth Management
106 W Vine St, Suite 300, Lexington, KY 40507
859.317.5889
