A will and a trust are two different legal documents used to distribute assets after a person’s death. A will is a legal document that outlines how an individual’s property and assets will be distributed after their death. This document must go through probate, which is a legal process of validating and executing the will. In order for this document to be valid, it must meet certain requirements such as being made by someone who is of sound mind, being signed and dated by the individual, and signed by two witnesses.
A trust, on the other hand, is a legal relationship where a trustee is appointed to hold and manage assets for the benefit of named beneficiaries. Trusts can be revocable or irrevocable, meaning that the trust can be amended or terminated by the person who created it or it cannot be amended or terminated. Trusts generally do not need to go through probate, which can save time and expense.
One key difference between a will and a trust is that a will only goes into effect after a person’s death, whereas a trust can be used during a person’s lifetime. A trust allows for the transfer of assets outside of probate, while a will can only transfer assets after they have been through the probate process. Additionally, a trust allows for greater control and flexibility over how assets are distributed, as the trust document can specify how and when assets are to be distributed to beneficiaries.
It is important to note that there may be limitations or exceptions to the use of wills and trusts, and it is important to seek the advice of a licensed attorney who can provide personalized legal advice based on individual circumstances. It may also be necessary to review and update these documents periodically to ensure they reflect any changes in personal circumstances or relevant laws.
By
