WHAT IS THE DIFFERENCE BETWEEN A TESTAMENTARY TRUST AND A LIVING TRUST?

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WHAT IS THE DIFFERENCE BETWEEN A TESTAMENTARY TRUST AND A LIVING TRUST?

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A testamentary trust is a trust that is specifically written into your Will; it springs into being when you die. The disadvantage of this kind of a trust is that by being a part of your Will, the law requires that the probate court supervise the trust for as long as it is in effect. This eliminates many of the advantages of a trust such as privacy, speed of administration and reduced costs. A better way for many people is a “pour over Will” that is separate from your trust that pours over into a separately existing trust written during your lifetime any assets not already into the trust. In this way your trust avoids probate.

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