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

A living trust and a testamentary trust are both legal documents used in estate planning. They are used to plan how assets and property will be distributed after someone dies. However, there are some important differences between the two. A living trust is created during someone’s lifetime. This type of trust allows assets and property to pass to designated individuals without going through the probate court process. The assets and property in the trust are managed by a trustee, and they are transferred upon death. A testamentary trust is created in a person’s will and takes effect upon their death. Unlike a living trust, the assets don’t pass to the designated beneficiary until probate is settled. In addition, testamentary trusts can include conditions and instructions for how the assets are used. For example, a testamentary trust may dictate that the assets are used to benefit a minor or for educational purposes. In Texas, both living trusts and testamentary trusts must be properly created in accordance with state laws. It is important to work with an experienced estate planning attorney to ensure that the trust documents comply with these laws. Otherwise, the trust may not be valid.

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

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