What is the difference between a will and a trust in estate planning?

As a lawyer, I can provide legal advice on the difference between a will and a trust in estate planning. A will is a legal document that outlines how a person's assets will be distributed after their death. It allows an individual to name an executor who will carry out their wishes, and to also appoint guardians for minor children.

On the other hand, a trust is a legal arrangement in which a person, known as the settlor, transfers assets to a trustee to manage on behalf of the beneficiaries. The trustee is responsible for managing the assets and distributing them in accordance with the terms of the trust.

One of the main differences between a will and a trust is that a will only becomes effective upon the death of the testator, while a trust can take effect during the settlor's lifetime or after their death. This means that a trust can be used to manage assets and provide for beneficiaries even in situations where the settlor is still alive but may be incapacitated.

Another key difference is that a will is subject to probate, which is a court-supervised process that confirms the validity of the will and supervises the distribution of assets. This can be a lengthy and expensive process, and can also be subject to challenges from interested parties. A trust, on the other hand, can avoid probate and allow for a smoother and more efficient distribution of assets.

In terms of limitations or exceptions, it is important to note that trusts can be more complex to set up and manage than wills. They also typically have higher upfront costs, and may require ongoing management fees. Additionally, some assets, such as retirement accounts or life insurance policies, may not be able to be transferred to a trust.

In summary, the main difference between a will and a trust in estate planning is that a will takes effect only after the testator's death, while a trust can take effect during the settlor's lifetime or after their death. A trust can also avoid probate and allow for a smoother distribution of assets, but may require additional costs and management fees. It is important to consult with a licensed attorney to determine which option is best suited to your specific situation.