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

The primary difference between a living trust and a testamentary trust is when they go into effect. A living trust, also known as an inter vivos trust, is a trust that is created while the trust maker is still alive and can go into effect immediately. A testamentary trust, on the other hand, is created in a will or trust document that is not effective until after the trust maker has passed away. Living trusts are typically used to avoid the probate process, which is the court process that determines how to distribute a deceased person’s assets. Living trusts are also often used to manage assets and provide for the continued care of someone who is unable to manage their own assets due to disability. A living trust can also protect assets and provide for future generations without going through the probate process. In contrast, a testamentary trust is used to manage and protect assets after the death of the trust maker. A testamentary trust is often used to provide for beneficiaries who are minors, have special needs, or would not be able to manage the trust assets on their own. It is important to note that a testamentary trust document is part of a will and must be created and signed before the death of the trust maker in order to be valid. In summary, the primary difference between a living trust and a testamentary trust is when they go into effect. A living trust is created while the trust maker is still alive and goes into effect immediately, and a testamentary trust is created after the death of the trust maker and is only effective after the trust maker has passed away. Estate planning laws in Kansas should be carefully considered before making any decisions affecting future generations.

Related FAQs

What is an estate tax return and why should I file one?
What is a trust protector and what does it do?
What should I do if I suspect an invalid will?
How can I provide for my dependents after I die?
How can I protect my family's inheritance from creditors?
What is a revocable living trust?
What should I do if I want to disinherit a beneficiary?
What is a living trust and how does it work?
How do I plan for a child or grandchild with special needs?
What is probate, and how can I avoid it?

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

Related FAQs

Related Blog Posts