As a lawyer, I can explain the difference between a will and a trust.
A will is a legal document that outlines how a person's assets and belongings will be distributed after their death. It is executed according to the deceased person's wishes and can be modified or revoked by the person before their death. A will only becomes effective upon the person's death and will be subject to probate proceedings, which involve court supervision and administration of the estate. The distribution of assets through a will is public record and can be contested by potential beneficiaries or heirs.
A trust, on the other hand, is a legal instrument that allows a person (the trustor) to transfer assets to another person or entity (the trustee) to hold on behalf of the beneficiaries. Unlike a will, a trust can take effect immediately, and the trustee can manage and distribute assets according to the trust's terms during the trustor's lifetime and after their death. Trusts can be revocable or irrevocable, and revocable trusts can be changed or revoked by the trustor at any time. Trusts can also provide greater flexibility to distribute assets, including special provisions for the care of minor children or individuals with disabilities, and can avoid probate and potential challenges to the distribution of assets.
It is important to note that wills and trusts serve different purposes and have unique benefits and drawbacks depending on the individual's circumstances. Consulting with an experienced attorney can help determine which option would best achieve the individual's goals and help ensure the most effective and efficient transfer and distribution of assets.
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