What Is the Difference Between a Will & a Living Trust?

Both a will and a living trust are legal documents that spell out a person's wishes when she can no longer make her own decisions. When a person dies or is incapacitated, a will or a living trust can help family members make difficult decisions. A will is a document that provides instructions on how to disburse a person's assets following her death. A living trust puts a person's assets under the control of a trustee for management during the person's lifetime and distribution of the balance at the person's death.

Probate

A will must go through the probate process before benefits can be paid to beneficiaries, while a living trust can make funds available to beneficiaries immediately.

Executor

An executor must be named to carry out the wishes of the deceased. The person named in the trust as the grantor can distribute the funds as documented.

Costs

A will is very inexpensive to create, although probate costs can eat up some of the assets. A living trust costs more to prepare and manage, but probate savings can negate the costs.

Time

A will can only be executed once a person dies, while a living trust can be activated while the person is still alive.

Changes

A will cannot be altered once a person dies, but a living trust can be revoked or changed at any time while a person is still alive.

Resources

• Wills and Probate

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