What’s the Difference Between a Living Trust and a Testamentary Trust?
By: Catherine Hammond, Estate Planning Attorney / Category: Estate Planning, Wills & Trusts / Posted: 02 Jul 2010Understanding the difference between a living trust and a testamentary trust is essential to creating a trust that meets your goals.
A living trust is one that you establish and that takes effect while you’re alive. In order to create a living trust, you’ll sign a trust document that identifies you, as well as the trustee you’ve chosen to manage the trust (usually yourself), and the beneficiaries of the trust. The trust document also spells out the purposes of the trust, and lists the trustee’s powers and duties. Once the trust document is signed by both you and the trustee, you’ll have to fund the trust. This means transferring ownership of the property you want held by the trust into the name of the trustee. Once this is done, everything is business as usual. The beauty of a living trust is that if you become incapacitated, and when you die, there is no need for the legal probate process.
A testamentary trust is created under your will and doesn’t take effect until you die. If you want to establish a testamentary trust, you’ll use your will to identify the trustee, the beneficiaries, and the purposes of the trust. You’ll also identify the property to be held by the trust. Once your will goes through probate, the trustee will take control of the property and manage it on behalf of the beneficiaries you’ve identified.
An estate planning attorney can advise you as to which type of trust best meets your individual goals and needs.
The Hammond Law Group is a member of the American Academy of Estate Planning Attorneys.
Tags: trusts
July 5th, 2010 at 6:24 pm
Hi, i noticed your blog in the 5 am radioshow on BBC Radio Miami, these people built a show over writing a blog and web 2.0. Straight after the radioshow i’ll try to hit the road to your page about What’s the Difference Between a Living Trust and a Testamentary Trust? | Fountain, Tri-Lakes, Palmer Lake, Monument, Black Forest, Broadmoor, Briargate, Kissing Camels, Cheyenne Mountain, Manitou Springs, Canon City, Stratmoor, Woodland Park, Cimarron Hills, Gleneagle, Falcon, Elbert, Pueblo, Castle Rock, Larkspur, Castle Pines, Northgate Colorado Estate Planning, Probate and Living Trusts Attorneys | Hammond Law Group, LLC. Great post buddy! I hits the point – Its beneficial to watch only a single post writer from a number of i checked out whom has knowledge in what he’s writing about! Stay on your way.
July 11th, 2010 at 1:32 pm
Brilliant things, man! What you need to say is truly crucial and Im glad you took the time to share it. What you mentioned actually spoke to me and I wish that I can learn much more about this. Thanks for sharing your view. I am yet to locate anything at all as enlightening as this for the web.
July 13th, 2010 at 7:01 pm
Dear admin, thnx for sharing this blog post. I found it wonderful. Best regards, Victoria…
July 15th, 2010 at 1:57 pm
Dear admin, thnx for sharing this blog post. I found it wonderful. Best regards, Victoria…
August 7th, 2010 at 1:43 pm
Super writing. You have gained a new fan. Please maintain the fabulous posts and I look forward to more of your newsworthy updates.