• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
    • News and Events
    • Seniors Rock Radio
  • Estate Planning
    • Elder Law & Medicaid Planning
    • Estate Planning Services
    • Estate and Gift Tax Figures
    • Family Farm Succession Planning
    • Family-Owned Businesses & Farms
    • IRA Planning
      • Planning With An IRA
      • IRA & Retirement Planning
    • Legacy Planning Services
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law Resources
      • Elder Law Reports
    • Guardianship & Conservatorship
    • Hospice Care
    • Veteran’s Benefits
  • Resources
    • Definitions
    • FREE Estate Planning Worksheet
    • FREE Webinars
    • Estate Administration Legal Guide
    • Estate Planning Articles
      • Questions for Your Estate Planning Attorney Before Creating Your First Estate Plan
      • How to Create Your First Estate Plan in 2022
      • How to Choose a Guardian for Your Child
      • Address These Three Questions in Your First Estate Plan
    • Estate and Gift Tax Figures
    • Frequently Asked Questions
      • Adult Guardianship
      • Alzheimer’s Care
      • Custodial Accounts for Minors
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Elder Law
      • IRA & Retirement Planning
      • Is Your Estate Plan Outdated?
      • Legacy Planning
      • LGBTQ Estate Planning
      • Medicare and Social Security
      • Probate
      • Probate Avoidance
      • Irrevocable Trusts
      • Trust Administration
      • Trusts
      • Veterans’ Benefits
      • Wills
    • Newsletters
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Reviews
    • Our Reviews
    • Review Us
  • Medicaid Planning
    • Medicaid Planning
    • Emergency Medicaid & Nursing Home Planning
    • Medicaid Frequently Asked Questions
    • Medicaid Resources
  • Blog
  • Contact Us

Law Office of Michael Robinson, P.C.

Estate Planning Services in Rochester, New York and the Finger Lakes Area

Connect With Us Today

(585) 374-5210
Law Pay Button
Attend a Free Webinar
Home » Estate Planning » Living Trust vs. Testamentary Trust: What’s the Difference?

Living Trust vs. Testamentary Trust: What’s the Difference?

February 18, 2021Estate Planning

testamentary trustLivings trusts and testamentary trusts are two of the tools in the estate planning toolkit. In this post, we will take a look at the reasons why these trusts are used and explain the major difference between them.

Living Trusts

A living trust is a trust that goes into effect as soon as you sign it, so it becomes active while you are still alive. The revocable living trust is the most common type of living trust, and this type of trust is a very good alternative to a simple will for a number of different reasons.

As the name would indicate, you can revoke the trust if you ever choose to do so, and you would act as the trustee while you are living. Your access to your resources would not change after you convey them into the trust, so this should not be a source of concern.

You would name a successor trustee to assume the role after your passing, and your heirs would be the successor beneficiaries. The trust would become irrevocable after your passing, and the principal would be protected from creditors and most litigants.

If you do not want to provide direct, lump sum inheritances all at once, you can instruct the trustee to distribute a certain amount each month or on some other incremental basis.

Another major advantage that a living trust will provide is the avoidance of probate. This is a legal process that takes place under the supervision of a court.

When a will is used, it is admitted to probate, and a time-consuming process ensues. No inheritances are distributed while it is underway, and expenses steadily accumulate. Plus, the general public can access probate records to pry into the final affairs of the decedent.

When assets are distributed through the terms of a living trust, the probate court is not involved, so these drawbacks are avoided.

Testamentary Trusts

A testamentary trust is a trust that is provided for in your will. It would instruct the executor to establish the trust after you pass away, and it would become active at that time.

The executor could act as the trustee of the testamentary trust, but this is not a requirement.

These trusts are most commonly used to provide for minor children. Since they cannot handle their own resources, the trustee would administer on their behalf.

It is possible to use a testamentary trust in conjunction with life insurance. You can make the trust the beneficiary of an insurance policy on your life, and your child would be the beneficiary of the trust.

Regardless of the source of the funding, you can allow the beneficiary to have direct control of the assets when they reach an adult age of your choosing.

Access Our Free Worksheet

We have many written materials on this site you can explore to build on your estate planning knowledge, and there are hundreds of posts on this blog. One very valuable tool that you should definitely take advantage of is our estate planning worksheet.

People that have gone through it consistently give us positive feedback, and it is being offered free of charge right now. You can get your copy if you visit our worksheet access page and follow the simple instructions.

Need Help Now?

A lot of people know that they should take estate planning action, but they are reluctant to speak with someone they have just met about personal matters. This is totally understandable, but you can rest assured that we go the extra mile to make our clients feel comfortable from the start.

There is no cookie-cutter, one-size-fits-all plan that is right for everyone. As you can see from this post, there are different asset transfer methods, and there are many approaches that can be taken.

When you work with our firm, we will gain an understanding of your unique situation and help you develop a custom crafted plan that is ideal for you and your family.

If you are ready to get started, you can send us a message to request a consultation appointment, and we can be reached by phone at 585-374-5210.

 

  • Author
  • Recent Posts
Michael Robinson, Estate Planning Attorney
Michael Robinson, Estate Planning Attorney
Clients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors.
Michael Robinson, Estate Planning Attorney
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
  • Business Succession Planning May Be Easier than You Think - June 1, 2022
  • Estate Planning – Something You Shouldn’t Do Yourself - May 18, 2022
  • Just When You Thought You Understood the 10-Year Rule, Think Again - May 11, 2022

Other Articles You May Find Useful

Estate Planning – Something You Shouldn’t Do Yourself
inheritance
Do You Have to Accept an Inheritance?
Application of the Updated Life Expectancy Tables
Start 2022 the Right Way
The Importance of Insuring Real Estate
Shrunken Asset Values Open Estate Planning Opportunities

Primary Sidebar

Law Office of Michael Robinson, P.C.

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

TESTIMONIALS

A pleasure as always dealing with the entire staff. Always willing to explain the answers to our questions.

- Joseph and Julie Ann M.

Over the years we have been to many programs regarding Estate Planning. We were most impressed with Mr. Robinson’s presentation - both in subject matter and explanation in an understandable manner. We have put our “trust” in his competent hands. We were not aware of the complexity and the volume of paperwork generated for this undertaking. We found his staff to be most capable and client oriented in their knowledge and delivery.

- F.T. & L.T.

Our overall experience was one of thoughtfulness, clarity and comprehensiveness on the part of Michael Robinson, his staff and associates. We attended Michael’s seminar on legacy wealth, and found him to be clear and well-spoken. He touched on all aspects of Estate Planning in which we were interested. Our first of two visits to his office was timely and helpful enough for us to consider developing a plan. We finalized our document at a necessary meeting. His staff was accommodating and virtually spelled out every aspect of the plan. We highly recommended Michael and his system for developing a trust.

- Sharon T.

“From the first visit I was welcomed (like family). The office & girls have all their ducks in order! Very friendly! Mr. Robinson explained everything in detail. 100% satisfied. Will pass the word on. Great Law Firm. Thank you so much.”

- Geraldine P.

Establishing a Family Wealth Trust through the Law Office has been a positive experience, the staff is congenial, patient, thorough, professional and knowledgeable. Thank you for all your kindness. We certainly are comfortable and confident with our decision.

Beverly L.

<
>

News & Events

Seniors Rock Radio Show Recording 5-1-21

https://drive.google.com/file/d/1U7UkQbEGy-xY7XFAXvX9Qz7pKSVDVV3D/view?usp=drive_web   Author Recent Posts Michael Robinson, Estate Planning AttorneyClients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors. Latest posts by Michael Robinson, Estate Planning Attorney (see all) Business Succession Planning May Be Easier than You Think - June 1,... Read more →

Pittsford Office

1163 Pittsford-Victor Road, Suite 120 (Powder Mill Office Park)
Pittsford, NY 14534-3817
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Map

mrobinson_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
robinson law logo

The Law Office of Michael Robinson, P.C.

Attorney Advertisement


© 2022 American Academy of Estate Planning Attorneys, Inc.