A living trust provides lifetime and after-death property management. This a great way for you to manage your property during your life time as well as dictate what happens to your property after you pass away.
If a living trust is properly written and funded you can:
A living trust is more expensive to set up than a typical will because it must be actively managed after it is created. Most importantly, however, a living trust is useless unless it is funded. A living trust only can control those assets that have been placed into it. If your assets have not been transferred or if you die without funding the trust, the trust will be of no benefit as your estate will still be subject to probate and there may be significant estate tax issues.
There are generally two types of living trusts, revocable trust and irrvocable trust.
The simplest difference between the two is that assets remain in the grantor’s estate in a revocable trust but move out of the estate in an irrevocable trust.
Revocable Trust - you are in control of your property during your life time and you can exercise control over the use of your property after you pass away and you have the right to cancel the trust at any time while you are alive and capable.
Irrevocable Trust - An irrevocable trust moves trust assets out of the trustmaker’s hands, and the grantor is no longer considered to own them. An independent trustee makes all the decisions regarding investments on behalf of all the trustees, which may or may not include the grantor.