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

A living trust and a testamentary trust are both types of trusts used in estate planning, but there are some major differences between them. A living trust is a written legal document that sets out how an individual’s assets and property should be managed and distributed while they are alive and after they pass away. The individual who creates the trust is known as the grantor, and a trustee is named to manage the trust. In Hawaii, living trusts are often used to avoid probate, the lengthy and expensive process of transferring property from a deceased person to their heirs. A testamentary trust, on the other hand, is created by an individual’s will, usually after their death. It is made up of the assets that are left in the will and is managed by the appointed executor or trustee. This type of trust is designed specifically to manage and distribute the assets of the deceased and to provide for certain beneficiaries. Testamentary trusts are required to go through probate in Hawaii, so they cannot be used to avoid the process.

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

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