A will is a legal document that outlines how a person's assets and property will be distributed upon their death. It provides instructions for the executor of the will to follow and can also include other important provisions such as guardianship of minor children.
A trust, on the other hand, is a legal arrangement in which a person (the trustor) gives control of their assets to a trustee who manages these assets for the benefit of the beneficiaries named in the trust. A trust can be created during a person's lifetime (a living trust) or after their death (a testamentary trust).
The main difference between a will and a trust is that a will only goes into effect after a person's death, while a trust can be effective during their lifetime as well. Additionally, while a will must go through probate, a trust can potentially avoid the probate process.
Another key difference is privacy. A will is a public document, which means that anyone can request a copy of it from the court. A trust, on the other hand, is private and only those named in the trust or those with a lawful interest in it can receive information about it.
One potential limitation of a trust is that it can be more expensive to set up and maintain than a will. Additionally, the assets in a trust may not be immediately accessible after the trustor's death, as the trustee may need to take certain steps to ensure that the assets are properly distributed to the beneficiaries.
In general, the decision of whether to create a will or a trust depends on the specific needs and circumstances of the individual. It is important to consult with a licensed attorney to determine the best option for your situation.
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