Does a Living Trust Override a Will?
Understanding the relationship between a living trust and a will is crucial for anyone planning their estate. A living trust and a will are both legal documents used to distribute assets after death, but they serve different purposes. One common question that arises is whether a living trust overrides a will. This article delves into this topic, exploring the differences between the two documents and how they interact.
A living trust, also known as a revocable trust, is a legal entity created during the grantor’s lifetime. The grantor transfers assets into the trust, which are then managed by a trustee. The primary purpose of a living trust is to avoid probate, which is the court process of validating a will and distributing assets to beneficiaries. By placing assets in a living trust, the grantor ensures that those assets pass directly to the beneficiaries without going through probate.
On the other hand, a will is a legal document that outlines the grantor’s wishes regarding the distribution of their assets after death. If a person dies without a will, their estate will be distributed according to state laws, which may not align with the grantor’s wishes. A will goes into effect only after the grantor’s death and is subject to probate.
So, does a living trust override a will? The answer is not straightforward. If a person has both a living trust and a will, the living trust typically overrides the will. This is because the living trust is designed to manage and distribute assets outside of probate, while the will only governs assets that are not part of the living trust. In other words, if an asset is in the living trust, it will pass to the beneficiaries named in the trust, regardless of what the will states.
However, there are some exceptions to this rule. If the living trust is not properly funded or does not cover all of the grantor’s assets, the will may still apply to those assets. Additionally, if the living trust is revoked or becomes invalid, the will may take precedence.
It is essential to work with an estate planning attorney to ensure that your living trust and will are properly drafted and coordinated. This will help avoid any confusion or disputes among your beneficiaries and ensure that your assets are distributed according to your wishes.
In conclusion, a living trust generally overrides a will when it comes to distributing assets. However, there are exceptions to this rule, and it is crucial to have a comprehensive estate plan that addresses all aspects of your assets and preferences. Consulting with an estate planning attorney can help you create a plan that ensures your assets are distributed efficiently and according to your wishes.
