Without a will, the courts distribute your assets and property according to state statute. This is also known as intestate. Additionally, if you do not have a will, the court will decide who will become the guardian of your minor children in the event that both natural parents are no longer living.

A trust and a will work together. A “pourover” will works in tandem with your trust. A pourover will directs assets to be moved into your trust and administered accordingly.

No. After the material exemption your spouse will only receive half ½ of your intestate property (the assets/property that you do not own jointly with right of survivorship). In general, your remaining intestate assets/property will distributed in following order:

1. You want to change your beneficiaries.
2. You want to change your trustee, personal representative or guardian.
3. Divorce, marriage, or children.
4. The estate tax laws have changed.
5. Your assets have significantly increased or decreased in value.

Why does my will/trust not control my retirement accounts and life insurance polices? Your retirement accounts, including 401(k)s and IRA’s, and life insurance policies are distributed to the beneficiaries you choose for those policies and are not controlled by the terms of your will or trust. You will need to name a beneficiary (the person you want to inherit) to receive the benefits of your plan. In some circumstances you will want to name your trust as the beneficiary to ensure that the payouts of those policies are administered pursuant to the terms of your trust.

Security

A trust provides uninterrupted management of your assets if you become ill or incapacitated. Your successor or back-up trustee can manage the trust for you. This may eliminate the need for the courts to appoint a guardian or conservator to manage your affairs. Additionally, provisions can be drafted in your trust to secure the assets for your beneficiaries. For example, prior to your beneficiaries receiving their inheritance, their expected inheritance cannot be used as collateral, to satisfy a court judgment, or as assets in a divorce.

Control

A living trust gives you the most control over your estate. You control who gets your assets and how much they get (i.e., you can choose the ages you want your beneficiaries to inherit). You remain in control of appointing your successor trustees and beneficiaries. You also retain control of the management of your assets during your lifetime.

Privacy

A trust does not get filed with the court and is a private document. This ensures that the money you want your loved ones to receive remains confidential.

Flexibility

During your lifetime, you can change your trust or completely revoke it. You also can choose to fund your trust during your lifetime or have your assets go to the trust after your death.

Professional
Management

You can choose for a bank or trust company to manage your assets either during your lifetime or after your death. This can eliminate the worries of day-to-day management and investment of your assets.

Avoiding Probate

The assets that you put in your trust during your lifetime will avoid probate. In Kentucky, the probate process is relatively uncomplicated and inexpensive. We can discuss whether funding your trust during your lifetime is the best option for you.

Tax Savings

A living trust can be drafted to make the most of federal estate tax exemptions. Currently, the federal tax exemption amount is over five million.

• You want to change your beneficiaries.
• You want to change your trustee, personal representative or guardian.
• Divorce, marriage, or children.
• The estate tax laws have changed.
• Your assets have significantly increased or decreased in value.