Living Trust Will - A Tale Of Two Forms That Travel Well Together

December 25, 2004
By Kathy Curtis

When the settlers in America first arrived, they brought along an intact legal system. Some of the first documents drawn up came from living trust will practices set up throughout Europe.

A European Flare
Only the rich and powerful aristocrats of Europe could afford these useful services. A will and trust were essential papers upheld by the courts and drafted by the time's most expensive attorneys. The benefits of living trust wills enabled the next generation to benefit from the wealth of the previous owner. The first wills in America performed a bit like both a will and trust: overlooking the personal and financial affairs on the owner's behalf. This type of system soon took a much clearer path.

A Common Man's Quest
Up until the 1960s, the practice of filing a will and a trust was reserved for the wealthier estates. Most estate planning and documentation costs ran into the thousands of dollars. Also, state laws were making this practice much more a necessity rather than a luxury.

Language Barriers
The days when the fancy will could tell every dead man's tale were drawing to a close. In some states, the language used didn't always guarantee that intentions were going to be protected by probates or enforcement. A living trust alone didn't cover all bases either.

The Different Lanes Of A Trust And A Will
The main function of a trust to hold the owner's belongings such as real estate and financial accounts and then distribute these assets upon the owner's passing. When a living trust is filed and funds are transferred into the trust, the grantor (person who created the trust) has a high measure of reassurance that his decisions will be enforced upon his passing. The grantor then appoints certain titles to different important people, such as Trustee, successor Trustee, and Beneficiaries. Since the trust is created while the grantor is still alive, the grantor has the option of revoking (making changes) as he sees fit. As long as the grantor is not incapacitated, he is still in charge of the trust.

Different Lanes On The Same Highway
A symphonic combination of a trust backed up with a will is highly advised. Since a living revocable trust does not cover the same topic as a will, a person should balance his affairs with a will. A will identifies guardianship of minors and states his intentions should he face medical complications.