What is the difference between a will and a trust and which one should I choose?

A will and a trust are two separate legal documents used for long-term planning of one's assets, but they have different functions and benefits.

A will is a document that outlines how a person's assets will be distributed after they pass away. It names an executor, who will manage the distribution of the assets, and names beneficiaries who will receive specific assets. A will can also name a guardian for minor children.

A trust, on the other hand, is a legal agreement between three parties: the creator of the trust (often called the "grantor" or the "settlor"), the trustee who is responsible for managing the assets in the trust, and the beneficiaries who are named to receive the assets in the trust. A trust can be either revocable (meaning the grantor can change or cancel the trust while they are alive) or irrevocable (meaning the grantor cannot change or cancel the trust once it is created). There are a variety of trusts available, including family trusts, charitable trusts, and special needs trusts.

One key difference between a will and a trust is that a will must go through probate, a court-supervised process of distributing assets after someone dies. This process can be time-consuming and expensive. In contrast, assets held in a trust do not go through probate, but are distributed according to the terms of the trust, which can save time and money.

Another difference is that a will only takes effect after the person dies, whereas a trust can take effect as soon as it is created. A trust can be used to plan for incapacity, by naming a trustee to manage assets and make decisions on behalf of the grantor if they become unable to do so themselves.

In terms of which document to choose, it depends on individual circumstances and goals. A will may be sufficient for someone with relatively simple estate planning needs, while a trust may be a better choice for someone with more complex assets or family situations. It is also possible to use both a will and a trust in an estate plan.

It is important to note that laws surrounding wills and trusts can vary by state, and there may be limitations or exceptions depending on individual circumstances. Therefore, it is recommended to seek the advice of a licensed attorney with experience in estate planning to determine the best course of action for your specific situation.