A living trust and a will are both estate planning documents, but they serve different purposes and have distinct characteristics.
A living trust is created during the grantor’s lifetime and holds assets for the benefit of beneficiaries. The grantor typically acts as the trustee, maintaining control over the assets, and can name successor trustees to manage the trust if they become incapacitated or upon their death. Assets held in a living trust generally bypass probate, offering privacy and potentially reducing estate administration costs.
In contrast, a will is a legal document that outlines the distribution of assets and appoints guardians for minor children upon the testator’s death. It does not take effect until the testator dies and must go through probate, a court-supervised process to validate the will and distribute assets. Wills are public documents, and the probate process can be time-consuming and costly.
While both documents facilitate asset distribution, a living trust offers more privacy, flexibility, and potential cost savings compared to a will, making it a preferred option for many individuals seeking comprehensive estate planning.