Suppose you created a living trust and transferred property into it for your beneficiaries to inherit when you pass away. You might not know when your health will take a turn, but you’ll know that your assets will go to the right people rather than going through probate or to the state. However, what if you pass away in 20 years? You might be wondering, “if I have a living trust, do I still need a will in MD?”.

Keep reading to learn how a living trust works, how it’s different from a will, and why a will is still necessary for other reasons besides bypassing probate.

How Does a Living Trust Work?

When creating a revocable living trust, you (the settlor) name yourself as the primary trustee so you can manage the trust assets. You also name a successor trustee to distribute the trust assets to the named beneficiaries when you pass away.

Living trusts are amendable and revocable while you are alive and legally competent to manage the trust assets. You can transfer many different assets into the trust, including:

• Real estate
• Investment accounts
• Bank accounts
• Personal property, such as family heirlooms
• Business ownership
• Cryptocurrency

All trusts bypass probate, whether revocable or irrevocable. The difference between the trust types is that only the trustee can change an irrevocable trust after the settlor creates and funds the trust.

A revocable trust becomes irrevocable when you pass away, meaning that no one can alter the trust beyond the trustee administering the trust assets to the beneficiaries according to the trust instructions.

How Does a Will Work with a Trust?

To answer the question, “if I have a living trust, do I still need a will in MD?” consider these differences between a will and a trust. A will works alongside a trust to make sure all of your assets and dependents are taken care of after you pass.

You may not remember to transfer all your assets into the trust before you pass away. You could also pass away suddenly before transferring your assets. With a pour-over will, in addition to your living trust, the will document will transfer any assets eligible for probate into the trust so beneficiaries receive their full inheritance.

There are also several end-of-life functions of a living will and advance directives if you become incapacitated. A durable power of attorney lets you name an agent for finances or healthcare decisions and dictate what palliative care you wish to receive.
If you have minor children, you may also nominate a guardian in a will, but not a trust.

Contact the Powers & Worshtil, P.C., PC for Estate Planning in Maryland

If you’re still wondering, “if I have a living trust, do I still need a will in MD?” the answer is “yes.” For help creating a living trust or will document in Maryland, call us at the Powers & Worshtil, P.C., PC at 301-627-1000 or contact us online to schedule an initial consultation with an estate planning attorney.