What is the difference between a Living Trust and a Will ???

Answer 1

A living trust (revocable living trust or inter vivos trust) is a type of trust created for the purpose of holding ownership to an individual's assets during the person's lifetime and for distributing those assets after death.

In the common law, a will or testament is a document by which a person (the testator) regulates the rights of others over his or her property or family after death.

Answer 2

A living trust is an entity into which your assets are placed. A trust agreement is written up, and specifies who the trustees are currently and who the successor trustees will be upon the death of the grantor trustees (the person(s) whose trust it is). A trust keeps your assets private and out of the paper...and it doesn't have to go through probate. The costs are included upfront (whereas w/ a will they are paid after you die), and with a trust, there is no estate.

With a will, it has to go through probate court so it can be validated, and an executor or executrix is appointed, and/or a personal representative. An estate must be set up for the monetary assets to be deposited into, from which the final expenses will be paid. The probate process can be very long, costly, and quite honestly, annoying. When you die, your assets are listed in the paper for everyone to see.

I always encourage people in the way of a revocable living trust. The cost is around $1000 to set up, but if you have the assets for that, it really is worth it in the long run. good luck!

Answer 3

A will must be executed by the courts. This process is called probate. This process can take many years and cost a lot of money in legal fees. Most states in the US do not require this if the total estate value is under 100k, in this case there is no estate tax.

A living trust passes estate ownership directly to the trustee without the necessary direction of the courts.

In addition, you are granting privacy upon those you leave money and assets to. Whereas a will is a public document which can be viewed by anyone willing to visit the local county courthouse including sleazy investment brokers, a trust is a private document, viewable only by those entitled to the assets.

Answer 4

A will is a written instruction to the Court and a personal representative to distribute a deceased's assets in accordance with the deceased's wishes.

A "living trust" means a person with assets places his property into the hands of a trustee while s/he is still alive, with instructions to distribute those assets in accordance with the trust instructions at death.

A lot of people have made a lot of $$ selling trusts to people who have no need for them. As a general rule unless one's estate is complicated or large or involves an ongoing business, a living trust is useless & costs a lot more than a will to create and will result in greater expense after death.