Living Trust Vs Will

A living trust only can control those assets that have been placed into it.

Living trust vs will.

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

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 enables you to place certain assets under the management of a trustee. In most cases it also makes sense to name the same person for both. 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.

A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died. 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 more expensive to set up than a typical will because it must be actively managed after it is created.

If you become. It s a private contract between you as the trustmaker or grantor and the trust entity. While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death. In your living trust you name a successor trustee who will manage just the property left through the trust.

The funding process is necessary but can be tedious. Most importantly however a living trust is useless unless it is funded.