Family Trusts & Living Trusts: Is There a Difference?
Living Trusts are simply trusts created while a person or a couple are still living. Trusts that are created in a person’s Last Will and Testament do not actually come into existence until the person passes away. So they are not Living Trusts.
Within the general category of Living Trusts, some designate family members as the primary beneficiaries. Those family members receive the property and possessions when the person who created the trust passes away. The trusts that have family members as the final beneficiaries are typically call Family Trusts.
So, in the final analysis, Family Trusts are really just a specific type of Living Trust.