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 for estate planning in Washington. However, the two trusts have different purposes and requirements. A living trust, also known as a revocable trust, is a trust established during the lifetime of the trust maker. This trust is beneficial to avoid probate because it holds title to the trust maker’s assets, allowing them to be passed to the beneficiaries without going through probate. With a living trust, the trust maker is able to maintain control over the trust assets during their lifetime. A testamentary trust, on the other hand, is a trust that is created in the event of the trust maker’s death via their will. The trust maker’s will dictates the terms of the trust, such as who will receive the assets. This type of trust is beneficial because the assets pass to the beneficiaries without going through probate, however, the trust maker does not have the ability to control the trust assets as they would with a living trust. In short, a living trust is established during a trust maker’s lifetime and gives them the ability to control the trust assets, while a testamentary trust is established upon the trust maker’s death and is dictated by the terms of the will.

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

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