What is the difference between a testamentary trust and a living trust?

A testamentary trust is a trust that is specifically written into your will document. The disadvantage of this kind of a trust is that by being a part of your will, the law requires that the probate court supervise the trust for as long as it is in effect. This eliminates many of the advantages of a trust such as privacy, speed of administration and reduced costs. A better way for many people is a "pour over will" that is separate from your trust that pours over into a separately existing trust written during your lifetime any assets not already into the trust. In this way your trust avoids probate.