What is the difference between a living trust and a testamentary trust?

Living Trusts generally bypass probate, whereas Testamentary Trusts do not. Knowing the unique advantages of each type of Trust can also help you make your decision. A Living Trust is a natural choice for those who want to avoid probate. These Trusts protect families from extensive oversight from the court system.

Is a testamentary trust irrevocable?

Yes, a Testamentary Trust is considered irrevocable. The provisions of the Trust are detailed in your last Will and testament, and the Trust itself is only established upon your passing. During your lifetime, however, you would be able to update the provisions that are included in your Will.

Is a revocable living trust better than a testamentary trust?

While a revocable living trust offers more flexibility and control, it usually provides less asset protection against creditors during the grantor's lifetime as compared to a testamentary trust. This is because the assets in a revocable living trust are still considered to be owned by the grantor.