What is the difference between a lifetime trust and a will trust?

A lifetime trust is created while you are alive, whereas a will trust is written into your will and normally begins after your death.

With a lifetime trust, assets are transferred to trustees during your lifetime. Depending on the trust’s terms, the trustees may begin managing the property, investments or money immediately. Creating a lifetime trust can have immediate legal and tax consequences because ownership and control of the assets may change.

A will trust does not usually receive its assets until the person who made the will has died. It can then be used to provide for a surviving spouse or partner, manage an inheritance for children or protect assets for vulnerable beneficiaries.

Neither arrangement is automatically better. The most appropriate option depends on what you want to achieve, the assets involved and the needs of your beneficiaries.