What is the Defference?

What is the difference between a will and a living trust? To create a living trust, the settlor or trustor (the person who creates the trust) must put property into the trust (usually by changing the title), name a trustee to manage the assets, and name at least one beneficiary. You can serve as the trustee of your trust. A living trust is revocable unless you expressly declare it irrevocable.

Your living trust will become effective as soon as you sign it, and it will normally become irrevocable as soon as you die. Your trust assets will not go through probate. Your successor trustee can continue managing the trust assets as usual, with no interruption caused by probate proceedings.

A last will and testament is a legal document you create that specifies how your property will be distributed after you die, among other things. A will should normally contain the following:

• The identity of an executor who will manage your estate from the time you die until the probate process is complete;

• The identity of a guardian for your minor children, if you have any; and

• The names of your beneficiaries and what you want to leave to whom.

You might add other items as well. You might, for example, use your will to create a testamentary trust, add a property to it, establish its terms and name a trustee to manage it.

Following are some of the main differences between a living trust vs. a will in California:

• A living trust, unlike a will, can keep your assets out of probate proceedings.
• A trustor names a trustee to manage the assets of the trust indefinitely. Wills name an executor to manage the assets of the probate estate only until probate closes.
• Trusts tend to be more expensive and more complex to maintain than wills.
• In a trust, information about your estate stays private. In probate, information about your estate is made public.
• A Declaration of Trust, not a will, establishes the terms of the distribution of trust assets. The trustee is bound to observe these terms. A Declaration of Trust contained within a will creates a testamentary trust.
• If you establish a trust and then die, the only interruption to the trust will be the accession of a successor trustee if you were the trustee at the time you died. The administration of trust assets will not be otherwise affected by your death.
• Unlike the probate of a will, your estate will not have to pay a probate attorney or court fees in response to your death.
• A living will vs. living trust: A “living will” is not what most people mean when they refer to a will. Instead, a living will set forth your wishes for end-of-life medical treatment. Do you want to be kept alive on machines, for example? Never confuse a living will and a trust.

The two main reasons people create trusts are to avoid probate and take advantage of their flexibility.