Living trusts are the most common in use, but there is another type of trust.
While the living trust is used more frequently, there is also a testamentary trust. Many people have the documents that create one, but they aren’t aware of it, according to NWI Times in “Wills can create trusts.”
The revocable living trust is the most common in use, so it is often assumed that all trusts are revocable living trusts. However, the truth is that there are many different trusts.
It is very common for a will to create a testamentary trust, when the person making the will has minor children. The language of the will leaves assets to the child as held in trust by a third party. That third party becomes the trustee and assumes all of the normal responsibilities of a trustee.
You might even have these provisions in your will and not know about it, if you have not reviewed your will closely enough.
Whether your estate plan creates a trust for minor children under a revocable living trust or a will, make sure you understand what it will do (and not do) to protect and manage the inheritance.
An estate planning attorney can help you create the estate plan that meets the unique circumstances of you and your family.
Reference: NWI Times (Feb. 19, 2017) “Wills can create trusts.”
