What is the difference between a living trust and a testamentary trust?
A living trust (also known as an inter vivos trust) transfers ownership of property or other assets from a person(s) to the trust itself. A living trust starts during a person’s lifetime, immediately removing ownership from the individual so long as the trust was executed and funded properly.
A testamentary trust is included in a Last Will and Testament but does not come into existence until after the grantor’s death. Ownership of any assets devoted to the trust may remain within the legal possession of the grantor throughout their life.
The property or assets dedicated to the trust transfer into the trust after the estate has cleared probate.
You should seek advice from an estate planning attorney if you have a will but aren’t sure about a testamentary trust. This can provide an enormous amount of protection to your assets and your heirs’ future interest.
If you would like to speak to an attorney about this matter please call the Finity Law Firm at (407) 636-4066, email us at firstname.lastname@example.org, or contact us HERE.