Living Trust Vs Will

Most importantly however a living trust is useless unless it is funded.

Living trust vs will.

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 most cases the grantor serves as the trustee of his own revocable living trust managing the property placed within it during his lifetime. The funding process is necessary but can be tedious. While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death.

A living trust only can control those assets that have been placed into it. If you become. A living trust enables you to place certain assets under the management of a trustee. After a person s demise a successor trustee will help distribute the assets as specified in the trust document.

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. It s a private contract between you as the trustmaker or grantor and the trust entity. 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. In your living trust you name a successor trustee who will manage just the property left through the trust.

With a trust you initially serve as trustee and manage the property. 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 is a legal entity created by individuals to hold and own their assets after they transfer them into the trust s ownership. 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.

However the two estate planning options diverge in their execution. A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died.