The main difference between a will and a trust is that a will provides instructions for how a person's assets should be distributed after they die, whereas a trust can function both during a person's lifetime and after their death.
A will is a legal document that outlines a person's wishes for how their assets should be distributed after their death. It typically designates an executor, who is responsible for carrying out the instructions in the will. Additionally, a will can designate guardians for any minor children, and can outline funeral arrangements.
A trust, on the other hand, is a legal arrangement in which a person (the grantor) transfers assets to a trustee, who manages those assets for the benefit of one or more beneficiaries. There are many different types of trusts, each with their own specific purposes, but generally a trust can be used to manage assets for minor beneficiaries, distribute assets over time rather than all at once, and avoid probate.
While both wills and trusts are useful estate planning tools, they have some key differences in terms of their advantages and disadvantages. For example, a will is typically less expensive and easier to set up than a trust, but may require probate court proceedings and can be subject to challenges from disgruntled heirs. A trust, on the other hand, can be more expensive and complex to set up, but it allows for greater control over the distribution of assets and can help minimize taxes and other potential costs.
It's important to note that every situation is unique, and what works best for one person may not be the ideal solution for someone else. It's always a good idea to consult with a skilled estate planning attorney to determine the best course of action for your specific circumstances.
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