Difference Between Testamentary Trusts and Inter Vivos (Living) Trusts
For prospective law firm clients who want to schedule a free 15 minute initial phone call with Paul Rabalais, go to: https://go.oncehub.com/Paul8
This post should help you understand the difference between a testamentary trust and an inter vivos trust.
All trusts are either testamentary or inter vivos. Inter vivos trusts are also called "Living Trusts."
The best way to describe the difference is to put them in context of a real-life situation.
Let's say Jack is engaged in his estate planning. He is married to Jill and he has two children. He wants to leave his estate in a way so that Jill is taken care of, but after Jill dies, he wants his estate to go to his two children.
Jack goes to an attorney and the attorney prepares a Will with Testamentary Trust. The terms of the trust are a part of Jack's last will and testament. Jack's will says that when Jack dies, Jack's estate will go to the "Jack Testamentary Trust."
After Jack dies, Jill and Jack's kids assume that no probate is necessary because "Jack had a trust." However, their assumption is incorrect. There will always be a probate (or in Louisiana called a "Succession") when someone leaves their assets or estate to a testamentary trust. When Jack dies with a testamentary trust, his assets that are in his name when he dies will be frozen, and the courts must oversee the management and ultimate transfer of the assets to the trust.
Now, instead, let's say that, instead of Jack creating a testamentary trust, he creates the stand-alone "Jack Inter Vivos Trust" or the "Jack Living Trust," If Jack transfers his asset to the Jack Living Trust during his lifetime, no Succession or Probate will be necessary when Jack dies because the assets will already be in the trust and there will be no assets in Jack's name that would be frozen and subject to the court-supervised transfer process.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Louisiana Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: (225) 329-2450
Видео Difference Between Testamentary Trusts and Inter Vivos (Living) Trusts канала Rabalais Estate Planning, LLC
This post should help you understand the difference between a testamentary trust and an inter vivos trust.
All trusts are either testamentary or inter vivos. Inter vivos trusts are also called "Living Trusts."
The best way to describe the difference is to put them in context of a real-life situation.
Let's say Jack is engaged in his estate planning. He is married to Jill and he has two children. He wants to leave his estate in a way so that Jill is taken care of, but after Jill dies, he wants his estate to go to his two children.
Jack goes to an attorney and the attorney prepares a Will with Testamentary Trust. The terms of the trust are a part of Jack's last will and testament. Jack's will says that when Jack dies, Jack's estate will go to the "Jack Testamentary Trust."
After Jack dies, Jill and Jack's kids assume that no probate is necessary because "Jack had a trust." However, their assumption is incorrect. There will always be a probate (or in Louisiana called a "Succession") when someone leaves their assets or estate to a testamentary trust. When Jack dies with a testamentary trust, his assets that are in his name when he dies will be frozen, and the courts must oversee the management and ultimate transfer of the assets to the trust.
Now, instead, let's say that, instead of Jack creating a testamentary trust, he creates the stand-alone "Jack Inter Vivos Trust" or the "Jack Living Trust," If Jack transfers his asset to the Jack Living Trust during his lifetime, no Succession or Probate will be necessary when Jack dies because the assets will already be in the trust and there will be no assets in Jack's name that would be frozen and subject to the court-supervised transfer process.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Louisiana Estate Planning Attorney
www.RabalaisEstatePlanning.com
Phone: (225) 329-2450
Видео Difference Between Testamentary Trusts and Inter Vivos (Living) Trusts канала Rabalais Estate Planning, LLC
Показать
Комментарии отсутствуют
Информация о видео
30 марта 2018 г. 23:19:44
00:08:12
Другие видео канала
![If You Have a Revocable Living Trust, Watch This NOW! 🔴](https://i.ytimg.com/vi/HQBax2KGoFI/default.jpg)
![Trusts 101 - Estate Planning With Trusts](https://i.ytimg.com/vi/UdolwhDl96k/default.jpg)
![Are estate planning testamentary trust Wills right for you?](https://i.ytimg.com/vi/V4z8slJjz9E/default.jpg)
![Restrictions on Deed of Donation](https://i.ytimg.com/vi/Vt9E_0oWBTw/default.jpg)
![9 Revocable Living Trust Mistakes](https://i.ytimg.com/vi/9KSD878UHFE/default.jpg)
![Why I don’t do testamentary trusts..](https://i.ytimg.com/vi/GspVfR8Xd-g/default.jpg)
![4 Reasons NOT To Have A Living Will](https://i.ytimg.com/vi/FVwtF8biZNc/default.jpg)
![Canada Estate Planning 101 (6 Things You MUST CONSIDER!)](https://i.ytimg.com/vi/I1XFUQ_fss4/default.jpg)
![Putting Property Into a Trust](https://i.ytimg.com/vi/u7SqoipB0YI/default.jpg)
![Protect Your Assets Using Trust Funds](https://i.ytimg.com/vi/E3b3AZfAEjo/default.jpg)
![Why a Will versus a Trust: Good Estate Planning](https://i.ytimg.com/vi/2l4RXFSvwhc/default.jpg)
![Life Path 11 Guidance & Development 11/2, 29/11, 38/11, 47/11](https://i.ytimg.com/vi/mosOpN9Z2ok/default.jpg)
![Will My Spouse Leave It To Their Next Spouse?](https://i.ytimg.com/vi/MaohAlw9VTQ/default.jpg)
![Why Living Trusts Work and Wills Don't - Part 1](https://i.ytimg.com/vi/oXGF_n5xXsQ/default.jpg)
![Revocable Living Trust in 2021 Explained](https://i.ytimg.com/vi/bv2v9E_ApJA/default.jpg)
![Charitable Remainder Trusts 1: Introduction](https://i.ytimg.com/vi/XiJ3Fa_qby0/default.jpg)
![How Does Having a Trust Affect Your Divorce?](https://i.ytimg.com/vi/wZMe3puduNs/default.jpg)
![How Do Trusts Get Taxed?](https://i.ytimg.com/vi/NsjE9U_yLr8/default.jpg)
![Private Foundations 1: What are PFs and DAFs?](https://i.ytimg.com/vi/4tEPrH9TO8A/default.jpg)
![DIY Estate Planning - A Different Perspective](https://i.ytimg.com/vi/Psr5qgdB5VM/default.jpg)