Living versus Testamentary Trusts
What’s the difference between living trusts and testamentary trusts?
“Some quick legal definitions: living trusts get created by the grantor during their lifetime. Anyone looking to start a trust while they’re alive can make a living trust. Testamentary trusts, on the other hand, have to be created by the grantor’s will.
To remember the difference, it may help to think of the two trusts by when they can start. Living trusts can start anytime the grantor is still alive, while testamentary trusts don’t activate until the grantor’s will becomes effective, which occurs upon their passing.
Keep in mind, too, that living trusts have the advantage of avoiding any legal challenges that can arise during the probate process. Testamentary trusts must submit to the entire probate process because they don’t become effective until the will has made its way through the probate requirements.”
Your Phoenix Estate Planning Attorney
Nicole Pavlik is an experienced Phoenix estate planning attorney who can help you create a comprehensive estate plan. If you have questions about making a will, call Nicole Pavlik Law Firm today at (602) 635-6176 for a free consultation.