Revocable Living Trust vs. Last Will

Revocable Living Trusts

A Revocable Living Trust is a document in which the owner (the grantor) of that estate creates to transfer assets or sometimes to protect assets. This type of trust is amendable and revocable.

With a Living Trust, the grantor appoints a trustee to control and manage the assets once the grantor is unable to do so. This trustee can be a person, a group of people or a professional. The trustee is to carry out the grantor’s instructions and distributions in accordance with the trust document.

Last Will and Testament

A Last Will and Testament is a legal document that describes who the owner (the testator) wants to receive assets after death. A will is amendable and revocable as well.

In a Will, the testator names beneficiaries for their assets and they may name guardians for their minor children, if any. An executor is named in a will and it is the executor’s responsibility to carry out the testators last wishes.

The Difference Between the Revocable Living Trust and Last Will

There are many differences between these two legal documents, the main one: A will must to go through probate court before any distributions can be made whereas a Trust stays private and does not need court approval.

This is one of the main advantages of a Living Trust, it’s a private contract that stays private. Avoiding probate court cuts down on the time and expense of court costs.

Whichever method you find is right for you and your family comes with nuances and decisions that would best suit you, your family and your assets.

Call The Barkho Law Firm and we would be happy to meet with you for a free consultation to learn your family goals and help you decide which method of Estate Planning is best for you.

Visit our website at www.BarkhoLaw.com or call us at (248) 744- 6585 for your free consultation.