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

As a lawyer, I can explain the difference between a will and a living trust.

A will is a legal document that details how a person's assets will be distributed after their death. It also designates an executor who will oversee the distribution of assets and the settlement of debts. Additionally, a will can appoint guardians for minor children and specify funeral arrangements.

On the other hand, a living trust is a legal entity that holds a person's assets during their lifetime and during their incapacity, for the benefit of themselves and their designated beneficiaries. A living trust typically designates a trustee who manages the trust, and the person who creates the trust (called the grantor) can serve as the initial trustee. The grantor can then designate a successor trustee to manage the trust if the grantor becomes incapacitated, and after the grantor's death, the trust assets are distributed to the beneficiaries.

One key difference between a will and a living trust is that a will must go through probate, which is a court proceeding that oversees the distribution of the assets. This process can be time-consuming and costly, and can also subject the estate to court supervision. In contrast, a living trust does not need to go through probate, so it can save time, money, and potentially reduce legal disputes.

Another difference is that a will becomes effective only after the person's death, while a living trust can become effective immediately. This can provide flexibility for the person to manage their assets during their lifetime and plan for their potential incapacity.

However, it is important to note that creating a living trust can be more complex and costly than creating a will. A living trust requires transferring assets into the trust, which can involve changing titles, deeds, and other legal documents. Additionally, a person may still need a will to address any assets that are not included in the trust.

In conclusion, both a will and a living trust are legal arrangements that can help people plan for the distribution of their assets. The decision to use a will or a living trust depends on a person's specific circumstances and goals, and it is advisable to consult with a licensed attorney to determine the best option for their individual needs.