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.
Other People Are Reading
-
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.
-
