How Do Testamentary Trusts Differ From Revocable Living Trusts?

A testamentary trust is contained within your Will, and becomes effective only upon your death.  No property needs to be transferred into a testamentary trust to make it valid.  Testamentary trusts should be utilized where there exist specific concerns about the effect having control of substantial sums of cash might have on a beneficiary, for example, minors or persons of diminished mental capability.

A revocable living trust is an agreement that a trustee (usually yourself) shall hold all the property you transfer into the name of the revocable living trust for the benefit of the trust beneficiaries (usually yourself and your spouse).  A revocable living trust is effective only as to property expressly transferred into the trust.  With a few exceptions, revocable living trusts offer few advantages to Washington residents and are inappropriate for those who do not: 1) require heightened privacy, 2) hold large numbers of out-of-state real property parcels, or 3) have ongoing businesses in need of continuity of administration.

Brad Lancaster works as a Seattle divorce attorney, and Seattle probate attorney, and Seattle elder law attorney, serving King County and Snohomish County, including Seattle, Shoreline, Lake Forest Park, Edmonds, Woodway, Lynnwood, Mountlake Terrace, Alderwood, Brier, Kenmore, Woodinville, Mukilteo, Mill Creek, and Everett. Brad provides collaborative solutions to human conflict.