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

The two most commonly used trusts in estate planning law in Maryland are living trusts and testamentary trusts. A living trust is a document that provides instructions for how your assets are to be distributed upon your death. The trust is created while you are alive and is a legally binding document. You can appoint a trustee to manage the trust and determine who will receive your assets after your death. A testamentary trust is created in the will of the deceased person and is generally not created until after the death of the deceased person. This type of trust outlines how assets are distributed to beneficiaries of the trust upon the death of the deceased person. The will must be filed by the executor of the estate in order to begin the process of setting up the trust. The primary difference between a living trust and a testamentary trust is that the living trust is established while you are alive and the testamentary trust is established after your death. A living trust allows you to establish how you want your assets to be distributed while you are alive, while a testamentary trust is set up according to the instructions you leave in your will and takes effect after your death.

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

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