A will and a trust are two different legal documents used to distribute assets after the death of an individual. A will is a legal document that outlines how an individual’s assets will be distributed after their death. On the other hand, a trust is a legal entity that holds assets on behalf of a beneficiary or beneficiaries.
The main difference between a will and a trust is that a will goes into effect after death, while a trust can go into effect while the individual is still alive. A trust can also provide more flexibility in terms of distribution of assets and can offer added protection of assets from creditors and lawsuits.
The choice of which one is better for a specific situation depends on a variety of factors, including the size of the estate, the type of assets held, the number of beneficiaries, and the level of control desired over the distribution of assets. Additionally, it is important to consider the potential tax implications of each option.
For smaller estates with relatively straightforward asset distributions and few beneficiaries, a will may be sufficient. However, for larger estates with more complex asset distributions and multiple beneficiaries, a trust may be a better option.
It is important to seek professional legal advice to determine which option is best for your specific situation, as there may be limitations or exceptions to consider. If further action is necessary, a lawyer can assist in creating the necessary legal documents, such as a will or trust, to ensure that assets are distributed in accordance with your wishes.
By