A living trust is a legal tool that allows assets to be transferred to a trustee during the lifetime of the person creating the trust, known as the grantor. The trust instrument specifies the terms of the trust, such as the beneficiaries and the terms of distribution of trust assets. Upon the death of the grantor, the assets in the trust are distributed to the beneficiaries according to the terms set forth in the trust instrument.
The main difference between a living trust and a will is that a living trust allows assets to be distributed to beneficiaries without going through probate court. In contrast, a will must go through the probate process in order to distribute assets to beneficiaries. This means that a living trust can offer greater flexibility and privacy, as well as potentially faster distribution of assets to beneficiaries.
However, it's important to note that establishing a living trust can be more complex and costly than creating a will. Additionally, there may be some situations in which a will is preferable or even necessary, such as when the grantor has limited assets or wishes to leave assets to certain beneficiaries in a specific manner.
If you are considering creating a living trust, it's important to consult with a qualified attorney who can help you understand your options and navigate the legal process. They can also help ensure that your trust instrument accurately reflects your wishes and meets all legal requirements.
By
