Living Trust Vs Will

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

Living trust vs will.

A living trust only can control those assets that have been placed into it. If you become. 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 at least theoretically provides for a smoother transition of management and ownership of property.

What are the differences. 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. While both wills and living trusts establish procedures to manage and eventually distribute your assets to beneficiaries after your death. 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 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. A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died. However the two estate planning options diverge in their execution.

After a person s demise a successor trustee will help distribute the assets as specified in the trust document. 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. 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 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 is more expensive to set up than a typical will because it must be actively managed after it is created.