What is a Trust?
Understanding One of the Most Talked About Tools in Estate Planning
Odds are, you have heard someone talking about probate and how you need to avoid probate. They probably told you the only way to protect your assets was to get a trust.
But do you need a trust?
When people think about estate planning, they usually picture a will — a document that says who gets what after you die. But for some families, a trust is required to meet their family's needs. This could be true if you own real estate in multiple states, have minor children, or have a child who requires guidance when handling large sums of money. For some, a trust can be an efficient way to protect assets, care for loved ones, and avoid probate.
So what exactly is a trust, and how does it work?
The Basics: How a Trust Works
A trust is a legal arrangement that lets one person (the trustee) hold and manage assets for the benefit of another person (the beneficiary). The person who creates the trust is called the grantor or settlor.
You can think of it as a container that holds your property — like your home, bank accounts, or investments — and spells out exactly how those assets should be managed during your life and distributed after your death.
When you create a trust, you set the rules:
Who controls it (the trustee)
Who benefits from it (the beneficiaries)
When and how those benefits are distributed
1. Revocable Living Trust
A revocable trust (also called a “living trust”) can be changed or canceled at any time while you’re alive.
You usually act as your own trustee.
You keep full control of your assets.
It helps your family avoid probate after your death.
It offers privacy because it’s not filed with the court.
However, it does not protect your assets from creditors or reduce estate taxes — it’s mainly for convenience and efficiency. The key to making your trust work in Kentucky is proper funding — every asset you want protected or to bypass probate must be retitled in the name of the trust.
The Main Types of Trusts
Not all trusts are the same. The right type depends on your goals.
2. Irrevocable Trust
An irrevocable trust generally cannot be changed or dissolved. Generally, they are for the creator’s benefit, but the creator names another person or financial institution to control it (Trustee).
Because you give up control, the trust may offer added protection:
Assets may be shielded from creditors or lawsuits.
It can help with Medicaid eligibility and long-term care planning.
It can reduce estate taxes for high-net-worth families.
This type of trust must be carefully planned — you can’t simply “undo” it later: it’s irrevocable.
3. Testamentary Trust
A testamentary trust is created through your will and takes effect only after your death. It’s often used to manage money for minor children or other beneficiaries who may not be ready to handle a lump-sum inheritance.
These are a must for parents of minor children who don’t want a more complex revocable trust.
You keep things in your name, and don’t have to worry about “transferring things to the trust.”
You won’t avoid probate with this type of trust, but it can be a very important planning tool for those with minor or young adult children.
4. Special Needs Trust
A special needs trust allows a person with disabilities to receive funds for their care and quality of life without losing government benefits. It’s one of the most compassionate tools in estate planning.
Common Questions
about Trusts
The Bottom Line
A Trust Is About Control & Clarity
A trust lets you decide exactly how your assets are managed — both while you’re alive and after you’re gone. It provides peace of mind for you and stability for your family.
If you want to avoid probate, protect your loved ones, or plan for long-term care, a trust may be one of the smartest steps you can take.
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Trusts serve many purposes beyond probate avoidance. A well-drafted trust can:
Protect family privacy – Unlike a will, a trust isn’t public record.
Ensure continuity – If you become incapacitated, your trustee can manage your affairs without court intervention.
Provide asset protection – Certain trusts can shield property from creditors or lawsuits.
Control timing of inheritance – You can specify when and how beneficiaries receive assets (for example, at age milestones).
Simplify multistate property – A trust avoids the need for multiple probates if you own property in different states.
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A common misconception is that a trust automatically saves you from taxes.
In truth:
Revocable trusts do not provide tax savings — they’re treated as if you still own the assets.
Irrevocable trusts may offer tax advantages, but only if carefully structured.
Attorneys at the English Law Group, P.S.C. can help you understand what fits your goals and whether tax planning should be part of your trust design.
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Yes. Even with a trust, you should still have a “pour-over will” — a simple document that directs any remaining assets into your trust after death. This ensures nothing is left behind in your name that would require probate.
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Talk to a Kentucky Estate Planning Attorney
At English Law Group, we help Kentucky families create personalized estate plans that protect their assets and reflect their values. Whether you’re considering a simple living trust or a more complex structure, we’ll guide you every step of the way. We offer an initial consultation, including home visits, to discuss estate planning with those who can't come to us.