What is the difference between a “Testamentary Trust” and an “Inter Vivos Trust” or “Living Trust”?
When a Trust is created within a Will to hold property after death, it is called a “Testamentary Trust.” When people use a Trust to manage their property while they are still alive, it is called an “Inter Vivos Trust” or a “Living Trust.” Property that is transferred to a Living Trust before death does not go through probate. Furthermore, since a Living Trust is a Revocable Trust, you can always remove property or change the Trust terms at any time. The drafting of a Living Trust can be very complicated and may require technical expertise to ensure its terms are legally sufficient to meet specific objectives. The creation of a Trust does not negate the need for a Will. The Will serves as a safety net to transfer assets to your Trust at your death if those assets have not been transferred to your Trust during your lifetime.
