The Key Differences Between a Living Trust and a Will

📑A will goes through the probate process, while a living trust avoids probate.

⏳Wills are not fast and can take many months to process, whereas living trusts are automatic and done upon death.

📝While wills only work upon death, living trusts are actively used during one's lifetime and can be updated or changed.

💰Wills offer only one distribution option, while living trusts provide flexibility with four options: outright distribution, staggered distribution, incentive-based distribution, and charitable distribution.

📜Living trusts allow for more complex and detailed instructions, such as special needs trusts, protecting assets from creditors, and pet trusts.

What is the probate process?

—The probate process is the legal process of transferring assets after a person's death. It involves validating the will, paying outstanding debts and taxes, and distributing assets to beneficiaries.

Why are wills not fast?

—Wills are not fast because they require court involvement and legal processes, including providing notice to creditors and beneficiaries. The average time for probate can be 12 to 18 months, depending on the complexity of the estate.

Can I update a living trust?

—Yes, living trusts can be updated or changed during the person's lifetime. This provides flexibility to adjust beneficiary designations, asset allocations, and other instructions as circumstances change.

What are the distribution options with a living trust?

—Living trusts offer four distribution options: outright distribution, staggered distribution (e.g., at certain ages or life events), incentive-based distribution (e.g., upon completion of education or meeting specific goals), and charitable distribution (e.g., donating assets to a charity).

What kind of instructions can a living trust include?

—Living trusts allow for more detailed and complex instructions, such as setting up special needs trusts for disabled beneficiaries, protecting assets from creditors, creating pet trusts, and more.

00:18The probate process involves transferring assets after a person's death and can take several months to complete.

06:05Wills only work upon the person's death, while living trusts are actively used during one's lifetime.

09:05Wills require court involvement and may not meet enforceability requirements, while living trusts avoid probate and have specific instructions in place.

11:39Wills offer only one distribution option, whereas living trusts provide flexibility with four different distribution options.

12:36Living trusts can include more complex instructions, such as special needs trusts, asset protection, and pet trusts.

13:48Wills are not a fast process and often involve legal complexities, while living trusts provide a smoother and faster transfer process.