Living Trust Vs Will

What are the differences.

Living trust vs will.

If you become. A living trust enables you to place certain assets under the management of a trustee. A living trust is a legal entity created by individuals to hold and own their assets after they transfer them into the trust s ownership. The funding process is necessary but can be tedious.

This property is typically invested and spent for the benefit of the beneficiary typically the trust maker the person who created the trust at least during their lifetime. After a person s demise a successor trustee will help distribute the assets as specified in the trust document. Most importantly however a living trust is useless unless it is funded. Because most estates will need an executor to some extent it makes sense to make a will and name an executor even when you leave most of your property through a trust.

A trust is a private non legal document that allows an individual to nominate beneficiaries for their assets while they are living and after their death. In your living trust you name a successor trustee who will manage just the property left through the trust. In most cases it also makes sense to name the same person for both. A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died.

An overview you can t take it with you when you go while this familiar statement is true you can and should do your best to control your assets from beyond the grave. While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death. With a trust you initially serve as trustee and manage the property. It s a private contract between you as the trustmaker or grantor and the trust entity.

In most cases the grantor serves as the trustee of his own revocable living trust managing the property placed within it during his lifetime. A living trust is more expensive to set up than a typical will because it must be actively managed after it is created.