Creating a Trust in Your Will vs. Creating a Living Trust (Part 2)
Last week, we talked about a type of trust that many families are familiar with — a trust created inside your will, often called a testamentary trust. Those trusts can absolutely serve a purpose, but they only come to life after probate begins.
And for many families in Northern Kentucky and the Cincinnati area, that timing matters more than they realize.
Because if your trust is created through your will, your loved ones typically have to go through probate court first before that trust even exists. That means months — and sometimes longer — of court oversight, paperwork, legal costs, and public filings before your plan really begins to work.
This week, we’re going to look at the other option: a revocable living trust.
A living trust works very differently, and for many families, it can make life dramatically easier for the people they love most.
Let’s walk through how it works, what problems it solves, and how to decide whether it’s the right fit for your estate plan.
How a Living Trust Works
A living trust — often called a revocable living trust — is created during your lifetime, while you’re alive and able to make decisions.
Instead of waiting for the probate court to create your trust after death, the trust already exists now.
Here’s how that typically works:
You create the trust and transfer ownership of certain assets into it. Then you name yourself as the initial trustee, which means you stay fully in control of everything.
You can still:
Buy and sell property
Manage investments
Change accounts
Refinance your home
Make financial decisions exactly as you always have
From a day-to-day perspective, nothing changes about how you manage your life.
The trust simply becomes the legal container that holds those assets.
Within the trust agreement, you’ll also name a successor trustee — someone you trust to step in if you become incapacitated or after you pass away.
That person follows the instructions you’ve written into the trust.
You can include detailed guidance about:
Who receives your assets
When they receive them
How inheritances should be protected
What happens if beneficiaries are young or financially vulnerable
All of the protections that can exist in a testamentary trust can also exist in a living trust.
But there’s one crucial difference.
The Key Advantage: Your Plan Already Exists When Your Family Needs It
When someone has a living trust that is properly set up, the trust already owns the assets.
So if you become incapacitated or pass away, your successor trustee does not need court permission to begin helping.
There’s no waiting period for probate to begin.
No judge needs to approve their authority.
No public court file listing your assets and beneficiaries.
Instead, your successor trustee simply steps into the role you designed for them.
That means they can immediately begin handling important responsibilities like:
Paying bills
Managing investments
Maintaining property
Helping your family financially
Distributing assets according to your instructions
For most families, this makes an incredibly stressful time much simpler and more private.
Your loved ones don’t have to navigate court procedures while they’re grieving.
They simply follow the roadmap you created.
Living Trusts Also Help If You Become Incapacitated
Another major benefit of a living trust is what happens before death if you become unable to manage your own affairs.
Illness, injury, or cognitive decline can make it difficult to manage finances.
Without proper planning, families sometimes have to go to court to establish a guardianship or conservatorship — a process that can be expensive, time-consuming, and emotionally draining.
But if your living trust is already in place, your successor trustee can step in and help manage the assets in the trust.
That can prevent your family from needing court intervention at one of the most difficult moments in life.
The Most Overlooked Step: Funding the Trust
There’s one critically important detail many families don’t realize.
A living trust only works for assets that are actually transferred into the trust.
In estate planning, we call this “funding” the trust.
For example, that might mean:
Retitling your home into the trust
Updating certain bank or investment accounts
Coordinating beneficiary designations
Ensuring business interests are properly structured
If someone creates a trust but never transfers their assets into it, those assets may still go through probate.
Unfortunately, we see this situation more often than people realize.
That’s why a complete Life & Legacy Planning® process matters.
At Freedom Law Services, creating the trust document is only one step. We also help families:
Ensure assets are titled properly
Coordinate beneficiary designations
Identify gaps that could create problems later
Build a system to keep the plan updated over time
Because a plan only works if everything is aligned and maintained.
Why Some People Still Choose a Testamentary Trust
At this point, many people wonder:
“If living trusts offer all these advantages, why wouldn’t everyone choose one?”
The most common reason is upfront cost and effort.
A testamentary trust is created within your will, which means you don’t have to transfer assets during your lifetime. Everything happens later, through probate.
That can make the initial planning cost lower.
For some families, the potential probate costs or delays might not feel significant enough to justify the upfront investment.
Others simply aren’t concerned about probate.
But it’s important to consider what your family will experience later.
The Hidden Costs of Probate
Even relatively simple probate cases often involve:
Court filings
Legal fees
Mandatory waiting periods
Public disclosure of assets and beneficiaries
In Kentucky and Ohio, probate frequently takes many months, and sometimes longer depending on complexity.
During that time, your loved ones may be responsible for gathering documents, communicating with attorneys, and managing court requirements — all while grieving.
For many families, the experience is simply more complicated than it needs to be.
A properly funded living trust can often make that process:
Faster
More private
Less stressful for loved ones
And in some situations, it can even reduce the overall costs families face later.
Family Dynamics Matter Too
Another important factor to consider is family dynamics.
Because probate is a public process, anyone can access the court file and see details about your estate.
In families where disagreements or misunderstandings are possible, that public information can sometimes create unnecessary tension.
A living trust keeps those details private, which can help reduce the potential for disputes.
Certain Assets Make Living Trusts Even More Valuable
Some families benefit especially from living trusts.
For example:
Owning Real Estate in Multiple States
If you own property in multiple states, probate may need to happen in each state where property is located.
A living trust can often eliminate that problem entirely.
Business Ownership
If you own a business, probate delays can create uncertainty or disruption.
A living trust allows your successor trustee to step in and manage the business smoothly.
Complex Family Situations
Blended families, minor children, or beneficiaries who need financial protection often benefit from the additional flexibility a trust provides.
Creating a Plan That Actually Works
At Freedom Law Services, we don’t start with a one-size-fits-all recommendation.
Instead, we begin by helping you understand what would actually happen to your family today if something happened to you.
We walk through:
Your assets
Your family dynamics
Probate realities in our local courts
The real timeline and costs families experience
Then we help you decide what level of protection, privacy, and simplicity matters most to you.
Sometimes a testamentary trust truly is the right solution.
Other times, a living trust offers significant advantages.
Our goal is not just to draft documents — it’s to help you create a plan that works in the real world.
Supporting Your Family When It Matters Most
One of the biggest differences in our approach is what happens after the plan is created.
We help families properly fund their trusts, keep their plans updated, and understand how everything works.
And when the time comes — whether that’s incapacity or after death — your loved ones won’t be left trying to figure everything out alone.
They’ll have a trusted advisor who understands your plan and can guide them through the next steps.
That support can make an enormous difference during a difficult season.
Book a free 15-minute Discovery Call with Freedom Law Services today in our Crestview Hills, KY office. Together, we’ll create a Life & Legacy Plan that protects your time, your money, and — most importantly — your family.
Call us at (859) 344-6742 or visit www.FreedomLawServices.com/call-today to book your discovery call today.
This article is a service of Freedom Law Services. We don’t just draft documents; we ensure you make informed, empowered decisions about life and death for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™. During the session, you will get more financially organized than ever before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this valuable session at no charge.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you seek legal advice specific to your needs, such advice services must be obtained independently, separate from this educational material.
