A trust is like a cardboard box. Some trusts are created during life (Living Trusts) and others are created at death (Testamentary Trusts). In either case how assets are distributed from the trust, (the cardboard box) is determined by the terms of the trust. There is no need to look beyond the pages of the trust for direction.

A Living Trust can avoid Probate. You can create a trust today. You put all of your assets into that trust, or the cardboard box. You can hold and care for the assets like your own while you are alive, and when you pass away, all assets put in the trust (cardboard box), will go according to the terms of the trust. If you forget to put something into the trust, then you will also have a Probate when you die.

A Testamentary Trust is created when you pass away. The terms of the trust are actually part of your Will. This trust is created through the Probate process. Assets are put into this trust when the Will is fully settled, and the assets of the estate are distributed to the beneficiary, the trustee of the trust. For a more advanced estate with estate tax planning, a trust that is created in a Will is a must. In that way you will have a Will, a Probate, and a trust – all with the design to save on estate tax.

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