Testamentary Trust vs. Revocable Living Trust: What’s the Difference?

Both testamentary trusts and revocable living trusts are commonly used estate planning tools, but they operate differently. A testamentary trust is created through a will and does not come into existence until after the person’s death. A revocable living trust, by contrast, is created during a person’s lifetime and can hold assets immediately.

One major difference is that a testamentary trust generally requires the succession process because it is established through a will. A revocable living trust may help certain assets avoid probate or succession administration if those assets are properly transferred into the trust during life. However, testamentary trusts are often simpler and more cost-effective for many families, particularly parents whose primary goal is to provide structured inheritances for minor children.

Both types of trusts can be used to protect beneficiaries and control how assets are distributed. The best option depends on a family’s goals, the nature of the assets involved, and the level of ongoing management and probate avoidance desired.



Johnston Burkhardt is an attorney at Sternberg, Naccari & White, LLC with experience in trusts and estate planning for families. He regularly assists families in structuring trusts to protect long-term financial security and protection. To learn more about trusts and estate planning or to schedule a consultation, contact Johnston at (504) 324-2141 or johnston@snw.law.