As a lawyer, I can advise that a will and a trust are both legal instruments used in estate planning but serve different purposes.
A will is a legal document that outlines an individual's wishes regarding the distribution of their assets after their death. A will can name an executor to manage the estate, appoint guardians for minor children, and specify who should receive which assets. A will also goes through the probate process after the individual’s death, which involves validating the will’s authenticity and distributing the assets according to the instructions in the will.
On the other hand, a trust is a legal entity created by an individual that holds assets on behalf of beneficiaries. A trust can be revocable or irrevocable, and the individual creating the trust can serve as the initial trustee. A trust is often used to control the distribution of assets over time, as the trustee can manage the assets and distribute them to the beneficiaries. Assets held in a trust generally do not go through probate, and as such, trusts can provide a more streamlined process for the distribution of assets after death.
The main difference between a will and a trust is that a will only takes effect at the individual’s death, whereas a trust can take effect during the individual's lifetime. Furthermore, a trust can provide specific instructions regarding asset management and distribution that a will may not necessarily offer.
It’s important to note that both a will and a trust can be important components of an individual’s estate plan, and the choice to use one over the other should be made with the guidance of an attorney familiar with the relevant jurisdiction’s laws and individual circumstances. Additionally, the type of assets an individual holds, as well as their priorities for asset distribution, may impact which instrument is more appropriate in their specific situation.
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