What Is The Difference Between A Living Trust And A Testamentary Trust?

A living trust is simply a trust that an individual such as yourself will create while you are living. The person creating is usually called the grantor. It is normally set up to avoid probate. It gives the grantor a lot of flexibility as it can easily be amended. Therefore if the grantor wishes to make a change it can be done rather easily. Yet it passes the grantor’s property directly to the beneficiaries upon the occurrence of certain conditions stated in the trust and without the legal process of having to go to court and going through probate.

A testamentary trust is just the opposite. It is created through your will and upon your passing. So it does not come into existence while you are living but rather when you pass away. On the flip side, your estate must go through probate as the existence of the trust depends upon the probate of your will.

Which type of trust is right for you is largely dependent upon your goals and your circumstances. They all have a purpose and in the right circumstance can be a very effective planning tool. Call us at 516-570-4016 to discuss your best plan.