Living Trust vs Will in California – What is the Difference?

As you plan for your family’s future, you may have come across two kinds of estate planning documents: living trusts and wills.

Certainly, wills have been around a long time and are well known by many people. But living trusts may be a bit more unfamiliar to all but the most informed estate planners.

Don’t fall victim to thinking these are different terms for the same thing, though. In truth, a living trust is quite different from a will. Both are legal documents, but each carries distinct features, implications, and processes.

In this article, we will explore the difference between a will and a trust in California. This way, you can decide which document better serves your plans.

What is a Will?

A will is a simple legal document. It outlines how your belongings should be distributed to your beneficiaries after your death.

Wills can be created using a simple template or purely with the help of your lawyer. Either way, the key is clarity. A will should be thorough and leave no uncertainty about how any of your assets should be handled following your passing.

Think of a will as an instruction manual for your surviving family members and friends. It’s worth noting that in the state of California, a will can be amended at any time during your lifetime.

What is a Living Trust?

A living trust is a complex legal document intended for living individuals who have multiple assets or a complicated portfolio of assets. The document serves as a means to transfer assets in the trust. More specifically, to transfer from the individual to another living person.

If an individual has a complex or high worth estate, they require documentation to transfer it all. The living trust is a great means to untangle and uncouple it all relatively simply.

Differences Between a Living Trust vs a Will

You might think that the main difference comes down to complexity of the document. But the differences between the two document types goes much deeper. Even the terminology of each person in the process of execution is distinct. Check out this handy infographic from the National Council on Aging (NCOA) to see some differences.

Here are some other key differences between a will vs trust in California:

• Wills go through a probate process upon death. Living trusts avoid probate court altogether.
• Wills can be amended at any time. Living trusts can be made irrevocable, which means they cannot be altered.
• Wills are entered into public record upon death. Living trust documents and terms of the trust are not.
• Wills can be created by anyone. Living trusts require assistance from a legal professional.

What Happens When Successor Trustees Contest a Will vs a Living Trust in California?

According to state laws, an individual’s trust often supersedes their will. Why? Because the trust is in effect long before the individual dies. This contrasts with a will, which only goes into effect upon their death.

What happens in cases of a contested living will vs a living trust in California? Here too, the living trust also wins. This is because the living will is rendered null and void upon death.

Are Wills or Living Trusts Required?

In the state of California, neither a will nor a living trust are required. However, both documents are immensely helpful in outlining the clear delineation of assets. With these in hand, contested legal battles can be avoided.

Plan for Your Family’s Future

If you require help with estate planning documentation, estate planning attorney Alice Salvo and the experienced attorneys at her office are here to help you. Her talented professional team has worked with clients to arrange living trusts, wills, and many other estate planning documents. Contact the law offices of Alice Salvo for a free consultation.