Will Vs. Living Trust in Pennsylvania?

It is important to understand the differences between a will and living trust in Pennsylvania.

Although a will and living trust have some similarities, they also have some drastic differences under Pennsylvania law that need to be understood in order to effectively carry out an estate plan.

Avoiding Probate

All assets that pass to beneficiaries under a last will and testament in Pennsylvania must go through probate. Assets held in a living trust pass directly to the trust's beneficiaries without any probate action.

Protection From Creditors

The assets that beneficiaries receive under a last will and testament are subject to the beneficiary's creditors. Any assets left to a beneficiary under a living trust that remain in the trust are completely protected from the beneficiary's creditors.

Retention of Control

A individual who gives assets under a last will and testament retains no ability to dictate conditions that must first be met before the beneficiaries receive their inheritance. A living trust allows an individual to hold assets in trust until certain conditions are met, such as turning a certain age or obtaining a certain level of education. This allows the creator of a living trust to control assets from the grave.

References

• Unruh Turner Burke & Frees: Revocable Trusts and Wills In Pennsylvania -- Which to Use Is An Ongoing Debate
• Legalzoom.com: Will vs. Living Trust: What's Best for You?

Resources

• The Caton Law Firm: Will vs Living Trust: Understanding the Options