What is the difference between a living trust and a testamentary trust?

The primary difference between a living trust and a testamentary trust involves when they are established. A living trust is created during the lifetime of the trust maker while a testamentary trust is established by terms and conditions included in a will. A living trust can be either revocable or irrevocable. With a revocable trust, the trust maker retains control of the trust assets during their lifetime, and can amend, alter or revoke the trust. An irrevocable trust is a trust in which the trust maker gives up control over the assets, and the trust cannot be altered or revoked without the consent of the beneficiaries. A testamentary trust is created upon the death of the trust maker, and the assets of the trust are distributed according to the terms of the will. The trust maker will have previously stated who the beneficiaries of the trust should be, and how the assets should be divided. Testamentary trusts can be either revocable or irrevocable, depending on the language in the will. In Alaska, the creation of living trusts and testamentary trusts are both regulated by the Alaska Trust Act, which specifies rules and guidelines that must be followed when creating each type of trust. Additionally, Alaska estate planning law requires that the trust creator receive written notification of their rights and obligations when creating any type of trust.

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What is the difference between a living trust and a testamentary trust?

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