What are some similarities between wills and revocable living trusts?
A. As a general proposition, both wills and revocable living trusts are prepared as estate planning documents and, for that purpose, the two vehicles are virtually identical in the variety of estate plans which they can implement. For example, both wills and revocable living trusts can provide for distribution by outright gift or by trust, and both can take advantage of the various estate tax saving techniques. Since the disposition provisions of wills and revocable living trusts can be identical, neither affords estate tax advantages over the other. Wills and revocable living trusts also share certain similarities during the creator’s lifetime. For example, both documents can be amended or revoked by the creator and thus neither limits the creator’s control of his or her property. Since the creator of a revocable living trust is taxed on the trust income, the trust (like the will) does not afford any income tax advantages to its creator.
