What are the differences between living trusts and wills?

What are the differences between living trusts and wills?

Living trusts and wills are both estate planning tools, but they serve different purposes. A will outlines how your assets will be distributed after your death, while a living trust allows you to manage your assets during your lifetime and can help avoid probate.

Which one is better for avoiding probate?

A living trust is generally better for avoiding probate, as assets in a trust can be transferred directly to beneficiaries without going through the probate process.

Can I change a living trust after it's created?

Yes, you can change a living trust at any time while you are alive, as long as you are mentally competent. This flexibility is one of the advantages of a living trust.

What happens to a living trust when I die?

When you die, the assets in your living trust are distributed according to your instructions in the trust document, without going through probate.