When it comes to estate planning, many people in Kentucky have questions about trusts. They may not realize that tools could be essential for certain estate plans, regardless of their level of wealth. The revocable living trust is the most popular type of trust. The person who created the trust, known as the creator or grantor, may change the terms as and when he or she wants.
One example is a married couple who create a revocable living trust, naming themselves as co-trustees and also co-beneficiaries. The trust can be created, signed and executed, but it will only become operational property is actually transferred to the trust to fund it. The couple can then manage the trust’s assets according to the terms of the trust.
The trust agreement is a legal document that will include the name of a successor trustee who will take over the management of the trust after the deaths of the couple who created it. The trustee must manage the trust in a manner that is consistent with the law and the trust document. Various options are available for naming beneficiaries.
Current or primary beneficiaries will receive benefits now, and successor, alternate or contingent beneficiaries could receive trust benefits later. Other options include a beneficiary who receives the income from the interest or dividends of the trust. Remainder beneficiaries could receive any portion of the trust that remains after the deaths of other beneficiaries or upon expiration of their rights. Individuals or couples in Kentucky can seek the advice and support of legal counsel to create trusts or other estate planning documents.