Living Trust Vs Will

In your living trust you name a successor trustee who will manage just the property left through the trust.

Living trust vs will.

What are the differences. The funding process is necessary but can be tedious. 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.

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. 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. However the two estate planning options diverge in their execution. 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.

While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death. Most importantly however a living trust is useless unless it is funded. It s a private contract between you as the trustmaker or grantor and the trust entity. With a trust you initially serve as trustee and manage the property.

A living trust enables you to place certain assets under the management of a trustee. 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. After a person s demise a successor trustee will help distribute the assets as specified in the trust document.

A living trust only can control those assets that have been placed into it. In most cases it also makes sense to name the same person for both.