Testamentary Trust Vs Living Trust - Explained

Revocable Living Trust Testamentary Trust Vs Living Trust - Explained

Testamentary Trust Vs Living Trust

Creating a trust can feel like an overwhelming process, particularly when you don’t know the different kinds of trusts available to you, or what each of them means. Luckily, we’ve got you covered! 

This article will help you discover the difference between testamentary, revocable and irrevocable trusts. Whether you want to learn how to create them, how much they cost, or what the benefits of each one may be, keep on reading to find out more. 

What Is a Testamentary Trust?

A testamentary trust is a trust that is created once the owner of the assets passes away. 

You establish the instructions and specifications of the trust within your will, and once you pass away it becomes the responsibility of the courts to transfer the assets into the trust and hand over responsibility to the designated trustee. 

How Much Would it Cost Me to Create Trust?

The cost of creating a living trust depends mainly on the method you choose when it comes to making the document.

Using an Attorney

  • If you choose to hire a lawyer to help you draw up your living trust then you could be charged an hourly fee anywhere between $250 and $350. 
  • You should keep in mind that just the consultation explaining your circumstances and going through your assets could take more than an hour, so by the end of the process you could end up paying incredibly high fees.

Using DoNotPay

  • With DoNotPay you would only be paying for access to the service itself, after which you would have complete access to our Revocable Living Trust product.
  • This option would spare you the high legal fees, while still creating a professional well-structured and legally valid living trust.

Revocable, Irrevocable and Testamentary Trusts 

When it comes to the kind of trust that you should select, it can depend on your preferences. In general terms however, we recommend a revocable living trust as the easiest and most viable option, here’s why: 

Irrevocable Trusts

  • Irrevocable trusts are strictly unchangeable. They are created in such a way that makes it impossible to edit or change any of the details within the document.
  • This means that if (for whatever reason) you change your mind about something as important as your appointed trustee or benefactors, you cannot edit the trust.
  • An irrevocable trust also takes away your ownership of any of the assets placed within the trust. In simple terms you will no longer have any authority or say over the fate of what used to be your finances, properties, business, etc. 

Testamentary Trusts 

  • Testamentary trusts are still subject to probate after you pass away. The courts take on the responsibility of transferring your assets into the trust. This can be a process that takes anywhere up to 2 years.
  • If you want your family and loved ones to have access to your assets with as much ease and comfort as possible, then a testamentary trust isn't your best option.

Revocable Trusts 

  • A revocable trust is a much better option because it allows your trust to grow and evolve throughout your lifetime. A testamentary trust is only meant for after your death and an irrevocable trust has no flexibility.
  • A revocable trust allows you to also retain ownership of your assets, and can be undone at any point. 

Living Trusts by State

DoNotPay can help you create the perfect revocable trust using the specific laws and regulations of your state. See the table below to find where you live:

South CarolinaNew YorkOklahoma
LouisianaHawaiiNorth Carolina
Washington StateFloridaWisconsin
IndianaMichiganNew Jersey

Use DoNotPay to Create Your Revocable Living Trust!

Making a revocable living trust can be easier and faster than ever just by using DoNotPay! Our robot-lawyer can help you create a revocable living trust using your phone or computer. 

Follow these easy steps and you’ll have your very own revocable living trust ready to go in no time at all: 

  1. Create a DoNotPay account and make your way to the Revocable Living Trust product
  2. Tell us the state you live in
  3. Choose your beneficiaries
  4. Select your trustees
  5. Now include the properties and assets assigned to the trust
  6. Tell us where you’re getting the trust notarized

Once you have the document, remember to print it out and take it to a notary so you can finalize the process! This makes your revocable living trust legally valid!

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