Living Trust Vs Will

However the two estate planning options diverge in their execution.

Living trust vs will.

It s a private contract between you as the trustmaker or grantor and the trust entity. Most importantly however a living trust is useless unless it is funded. While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death. A living trust at least theoretically provides for a smoother transition of management and ownership of property.

After a person s demise a successor trustee will help distribute the assets as specified in the trust document. 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. In most cases the grantor serves as the trustee of his own revocable living trust managing the property placed within it during his lifetime. If you become.

A living trust enables you to place certain assets under the management of a trustee. In your living trust you name a successor trustee who will manage just the property left through the trust. What are the differences. The funding process is necessary but can be tedious.

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. A living trust is more expensive to set up than a typical will because it must be actively managed after it is created. A living trust only can control those assets that have been placed into it. A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died.

With a trust you initially serve as trustee and manage the property. 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.