Which type of trust is immediately effective upon execution?

A revocable living trust becomes effective immediately upon execution because it is established during the creator's lifetime and does not require probate to be functional. This type of trust allows the grantor to retain control over the assets and modify or revoke the trust at any point while they are alive.

This immediacy contrasts with other types of trusts. A welfare trust, for instance, may serve specific purposes and conditions that dictate when it becomes effective. An irrevocable trust is often set up to take effect immediately as well, but it cannot be modified or revoked once established, which is a key differentiator. A testamentary trust, however, is established through a will and does not take effect until the grantor passes away, thereby requiring the probate process before it becomes active.

The instant effectiveness of a revocable living trust is significant because it allows for seamless asset management and other benefits, such as avoiding probate and maintaining privacy regarding the assets during the grantor’s lifetime.