Family Trust & Living Trust Differences
Here in Idaho, the term Family Trust is really just a type of Living Trust.
In general, trusts may either be set up in a person’s Last Will and Testament (a “Testamentary Trust”) or they can be set up while the person setting it up is still alive (a “Living Trust”).
A Testamentary Trust set up in a person’s Will doesn’t actually come into existence until the person passes away and his Will is probated.
On the other hand, a Living Trust comes into existence while the person is still living. During the rest of that person’s life, he or she will typically be both the “trustee” (the person who runs the trust) and the “beneficiary” (the person for whose benefit the trust property is used). No one else has any authority to change the terms of the trust or to complain about how the trust is being run.
Then, when that person who created the Trust passes away, the Living Trust agreement that he or she created will designate who will be the successor trustee (who steps in to run the trust) and the new beneficiaries of the trust (the persons for whom the trust property is to be used or to whom the trust property is to be distributed).
If the ultimate beneficiaries of the Living Trust are family members of the person who created the trust, the trust will usually be referred to as a “Family Trust.” If those beneficiaries include friends, charities, or other non-family members, then the trust is more often called a “Living Trust.”
In short, here in Idaho, a “Family Trust” is really just a special type of “Living Trust.” The terminology is otherwise interchangeable.
Each and every client at Peters Patchin & Monaghan receives individual attention to the unique details of their family, assets, and other circumstances. Estate planning partners, Ben Monaghan and Daniel Patchin, have a wealth of experience in preparing Wills and Trusts since that – as well as handling probates – is all that they do. Our firm has just the tools needed in order to craft your unique estate plan that will provide for those you love in your absence.Need More Info? Give Us a Call
If you would like our help in setting up an estate plan and deciding between a Simple Will and a Trust, please give us a call at 208-939-2600 to schedule your free initial consultation. Or you can schedule your expedited appointment at your convenience on our Home Page by clicking on either of the yellow “Schedule Now” boxes on our Home Page.