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 will be distributed upon their death. It is important to note that a will only takes effect after the person's death. A will also allows the person to name a guardian for minor children and an executor to manage the distribution of their assets. A will can be changed or revoked at any time during the person's lifetime, as long as they are mentally competent.
On the other hand, a trust is a legal entity created to manage a person's assets during their lifetime and after their death. It is created by a trust agreement, which outlines how the assets in the trust will be managed and distributed. A trust can be revocable or irrevocable, depending on the terms of the trust agreement. A revocable trust can be changed or revoked at any time during the person's lifetime, while an irrevocable trust cannot be changed or revoked once it is created.
One of the main benefits of a trust is that it can provide for the management of assets if the person becomes incapacitated or unable to manage their assets themselves. A trust can also provide for the distribution of assets to beneficiaries without the need for probate, which can be a lengthy and expensive process.
It is important to note that both wills and trusts have their own unique advantages and disadvantages, and the decision of which to use should be made after careful consideration of the person's individual circumstances and goals. It is also important to consult with an experienced estate planning attorney to ensure that a will or trust is drafted and executed properly, and to address any potential legal issues or tax consequences.
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