Living Trust Vs Will

The funding process is necessary but can be tedious.

Living trust vs will.

A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died. Most importantly however a living trust is useless unless it is funded. In most cases it also makes sense to name the same person for both. 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. In your living trust you name a successor trustee who will manage just the property left through the trust. 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.

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 at least theoretically provides for a smoother transition of management and ownership of property. It s a private contract between you as the trustmaker or grantor and the trust entity. 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. If you become. A living trust only can control those assets that have been placed into it. 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 living trust is more expensive to set up than a typical will because it must be actively managed after it is created. With a trust you initially serve as trustee and manage the property.