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

The two main types of trust used for estate planning in West Virginia are living trusts and testamentary trusts. A living trust is created while the person creating it—known as the trustor—is still alive and can be either revocable or irrevocable. A revocable trust can be changed or revoked by the trustor at any time while an irrevocable trust cannot. This type of trust allows the trustor to manage their assets during their lifetime and after death. Assets in a living trust will bypass probate and are distributed according to the terms of the trust. A testamentary trust is created through someone’s will and takes effect after the trustor’s death. They are used to provide for individuals or organizations after the death of the trustor. Unlike a living trust, a testamentary trust goes through the probate process and must be established by the court. The trustor has no control over how the assets are distributed and the trust is managed by a trustee. The primary difference between a living trust and a testamentary trust is when they are created and how they are administered. A living trust is created and can be altered while the trustor is alive, whereas a testamentary trust is created through a will and distributed according to its terms after death. The trustor can be the trustee for a living trust, while a testamentary trust must be managed by a named trustee.

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

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