Living Trust Vs Will

It s a private contract between you as the trustmaker or grantor and the trust entity.

Living trust vs will. A living trust at least theoretically provides for a smoother transition of management and ownership of property. 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. After a person s demise a successor trustee will help distribute the assets as specified in the trust document.

In your living trust you name a successor trustee who will manage just the property left through the trust. Most importantly however a living trust is useless unless it is funded. 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.

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. However the two estate planning options diverge in their execution. The funding process is necessary but can be tedious.

In most cases it also makes sense to name the same person for both. While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death. With a trust you initially serve as trustee and manage the property. 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 only can control those assets that have been placed into it. If you become.