WHAT IS THE DIFFERENCE BETWEEN A WILL AND A LIVING TRUST?
A Will is what estate planners typically refer to as a “testamentary instrument.” That means that a will takes effect only upon death. A Living Trust, on the other hand, takes effect as soon as it is signed and assets are transferred to it. Both a Will and a Living Trust are, at their core, a set of instructions for the administration and disposition of assets and payment of administration expenses and taxes at death. A Living Trust, however, also directs the management of assets during life. As a result, if you have a properly funded Living Trust, your incapacity will not require a guardianship proceeding; your successor Trustee can simply continue to manage the assets in your trust without court intervention or supervision. Likewise, if you have a Living Trust to which all your assets have been transferred, your estate will avoid probate at your death. All of your assets will simply pass according to the instructions you left in your Living Trust and, although an administration proce
