Revocable Living Trust Vs Will

Because as the saying goes to each his or her own some estate planning attorneys use the term living trust when naming a client s revocable living trust agreement i e.

Revocable living trust vs will.

Revocable living trust vs. A trust in which the terms can be changed at any time. A revocable trust is a trust that can be updated any time you want while you re still alive also called a revocable living trust. Both a will and a revocable living trust provide a set of instructions for how to distribute assets after you pass away.

In most cases the grantor serves as the trustee of his own revocable living trust managing the property placed within it during his lifetime. Depending on whether you gain any tax savings though the cost analysis may end up swinging in favor of a living trust. It s a private contract between you as the trustmaker or grantor and the trust entity. These documents have some key similarities and differences that are worth considering before you decide which document to use.

So why are there so many different terms to describe the same thing. A revocable living trust is a trust document created by an individual that can be changed over time. A revocable living trust doesn t require probate because the trust owns the assets and the trust hasn t died. And while you re still living you keep control over all your stuff even if you ve put it into a living trust.

With a revocable living trust the person creating it can later change his or her mind regarding not only the property placed into it but also the existence of the trust itself. Revocable living trusts are used to avoid probate and to protect the privacy of the trust owner. It s just like a regular trust where you can put whatever valuables you want into it land. Revocable living trust vs.

Establishing a living trust requires additional planning and documentation beyond a last will and testament so it costs more up front as well. A revocable trust and living trust are separate terms that describe the same thing. Some of the benefits of a living revocable trust include the following.