If you’re planning for the future of your estate, you may be wondering what the difference is between an estate plan and a living trust. Some people believe they are the same thing. But the truth is they aren’t. There is a significant difference between a Living Trust and an Estate Plan. Here’s a quick overview of the key differences between these two estate planning tools.
Living Trust (Revocable): Will versus Trust
A living trust, also called a revocable living trust or an inter vivos trust, like a will is a document that allows a person to distribute their assets and possession to people or organizations after they die. The difference between a will and a living trust is that a will only takes effect after you have died while a living trust may be used by you during your life as well as after you die by future trustees and beneficiaries. Typically in a living trust, you, the grantor of creator of the trust, will also benefit from the trust as a beneficiary and will also run the trust by managing its assets acting as a trustee. A living trust will also create provisions for future trustees to manage and run the assets of the trusts, and because of this, it is a great tool for people who may experience or plan to experience future incapacity or mental impairments such as Alzheimer’s.
A living trust has several other benefits as well that may lead people to choose this option over a will. Living trusts are often used in plans for continued trusts for family members because with a living trust, you remain in control of how the assets are managed until you die or appoint a new trustee. Living trusts may also help you avoid probate. This beneficial to you because when a will goes through probate, there is always a risk that a court may override your wishes and instructions for how your assets should be divided. Avoiding probate also gives you greater privacy as probate hearings and court proceedings are open to the public meaning anyone can see your assets and beneficiaries.
Read more at: https://san-antonio-probate.com/estate-plan-vs-living-trust-whats-the-difference/
