A revocable living trust is a legal arrangement you create during your lifetime to hold your property for your own benefit and, after your death, for the people you choose. You can be your own trustee, you can change or cancel the trust whenever you like, and the property in the trust generally passes to your beneficiaries without going through probate court.
This page offers general information about Kentucky law, not legal advice. Reading it or contacting us does not create an attorney-client relationship; that begins only when we agree in writing to represent you. See our advertising notice.
How a Revocable Living Trust Works
Three roles matter. The settlor (you) creates the trust and puts property into it. The trustee manages the property, and in most plans you serve as trustee while you are living and able. The beneficiaries receive the property according to the instructions in your trust. You name a successor trustee to step in if you become incapacitated or die.
Under Kentucky’s trust code, a trust is revocable unless it expressly says it is irrevocable, and while the trust is revocable the trustee’s duties are owed to you as the settlor (see KRS Chapter 386B, including KRS 386B.6-020 and 386B.6-030). Because you keep control, you also keep the ability to amend, restate, or end the trust.
Why People Choose a Trust
- Avoiding probate for trust property. Property titled in the name of your trust at your death is distributed by your successor trustee under the trust’s terms, generally without a court-supervised probate proceeding for those assets. Probate is not always burdensome in Kentucky, but a trust can add privacy, speed, and simplicity, particularly for real estate.
- Planning for incapacity. If you can no longer manage your affairs, your successor trustee can manage trust property without a court appointing a conservator for it.
- Privacy. A will becomes part of the public court record when it is probated. A trust generally does not.
- Control over timing. A trust can hold an inheritance for young beneficiaries or stagger distributions, instead of a lump sum at age 18.
- Blended families. A trust can provide for a surviving spouse and preserve the remainder for children from an earlier relationship.
A revocable living trust does not, by itself, reduce income taxes, and it does not shield your assets from your own creditors. For most families, the federal estate tax is not an issue; the 2026 federal basic exclusion amount is $15,000,000 per person. Kentucky’s inheritance tax does not apply to close family members such as a spouse, child, parent, or sibling, though it can apply to more distant beneficiaries. If you have a larger estate or a business, we will discuss tax planning with you.
The Documents in a Trust Package
The Trust Agreement
This is the core document. It names you as trustee, names your successor trustees, and says who receives what and when.
The Pour-Over Will
A trust only controls property that is actually in it. A pour-over will is a simple will that directs any property you forgot or acquired later to be transferred into your trust at death. Kentucky law expressly allows a will to transfer property to an existing trust (KRS 394.076). Property that passes under a pour-over will does go through probate, which is why we work to fund your trust properly during your lifetime.
The Certificate of Trust
Banks, title companies, and other third parties often want proof that a trust exists and that the trustee has authority, without seeing the private details of who inherits. A certificate of trust is a short summary for that purpose. Under KRS 386B.10-120, a certification of trust can confirm that the trust exists, who the settlor and trustee are, the trustee’s powers, whether the trust is revocable, and how title should be held, without disclosing the trust’s dispositive terms. A person who relies on it in good faith is generally protected.
The Bill of Transfer
A bill of transfer (sometimes called an assignment) moves your personal property, such as furniture, jewelry, vehicles you choose to include, and household goods, into the trust in a single signed document.
The Quitclaim Deed to Fund the Trust
Real estate is retitled by a deed. For a home that you already own, we typically use a quitclaim deed from you to yourself as trustee of your trust. Kentucky deeds must meet particular requirements, including the grantee’s mailing address, a statement of the consideration, and the name and address of the person who prepared the deed (KRS 382.135 and KRS 382.335). We prepare the deed, have it signed and notarized, and record it with the county clerk. Kentucky’s transfer tax generally does not apply to a transfer to a trustee when the grantor is the sole beneficiary (KRS 142.050). Federal law also generally protects a homeowner who moves a residence into a living trust from a lender calling the loan due, though we will review your loan documents and your title insurance and homeowner’s insurance with you.
Funding the Trust
A trust works only for property that has been transferred to it. Funding usually involves:
- Deeding real estate to the trustee (the quitclaim deed above).
- Assigning tangible personal property by bill of transfer.
- Retitling bank and brokerage accounts into the trust, or naming the trust as payable-on-death beneficiary if appropriate.
- Reviewing beneficiary designations on life insurance and retirement accounts. Retirement accounts are usually not retitled to the trust, because that can trigger taxes; we will advise you on how to name beneficiaries.
The individual package includes one deed. If you own additional parcels, we quote additional deeds separately. We also give you instructions for the accounts you retitle yourself.
Kentucky Points to Know
- Kentucky has a surviving-spouse interest (often called dower and curtesy) that reaches property in a revocable trust. The rules changed in 2026, and we take them into account when we design a plan for a married couple. See KRS 392.020.
- Your trust, deeds, and related documents need to be signed and notarized correctly. We hold a signing ceremony so nothing is missed.
- A trust does not replace a durable power of attorney, a living will, or a health care surrogate designation. See Powers of Attorney & Living Wills.
Fees for Trust-Based Planning
We price our routine estate planning work as flat-fee packages, so you know the cost up front. Complex situations, such as business succession or tax planning, are quoted individually after we talk. We are happy to walk you through exactly what each package includes before you decide.
| Package | What it includes | Fee |
|---|---|---|
| Individual revocable living trust package | Trust, certificate of trust, bill of transfer, one quitclaim deed (the $50 recording fee is included), and the execution (signing ceremony). Additional deeds are quoted separately. | $1,500 |
| Spouses – non-blended family | Full trust package of six documents. Includes the execution and the filing fee. | $2,000 |
| Spouses – blended family | Trust-based package tailored to a blended family. Includes the execution and the filing fee. | $2,500 |
Discount policy. We take 10% off the fee for military, teachers, police, and firefighters, and for clients who make a donation of $100 or more to an animal shelter or equivalent organization. Only one discount applies per engagement; discounts do not stack. Just tell us the reason when you pay. We invoice the full amount, and you pay 90%.
Looking for a lower-cost plan without a trust? See our full fee comparison, which includes will and power of attorney packages.
Frequently Asked Questions
Can I change or cancel my trust?
Yes. A revocable living trust can be amended or revoked by you at any time while you have capacity.
Do I still need a will?
Yes. A pour-over will is part of a trust-based plan. It also lets you nominate a guardian for minor children.
Does a living trust make my estate tax-free?
No. A revocable trust is generally treated as part of your estate for tax purposes. As noted above, most Kentucky families do not owe federal estate tax, but we will review your situation.
What happens to the trust if I become incapacitated?
Your successor trustee takes over management of the trust property under the terms you set. You should also have a durable power of attorney for assets outside the trust.
Talk With Us
To get started, complete our secure estate planning intake form, and one of our attorneys will follow up with you. You can also call us at (859) 444-4695 or contact our office. Wolfe & Houlehan PLLC is located at 226 N. Upper St., Lexington, Kentucky 40507.