“Will” and “Trust” are familiar terms in estate planning. Though they both can contribute to perfect an estate plan, these two devices are not alike in many different ways.
The first as well as the most important difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it.
What they are used for?
A will is prepared to indicate property distribution and beneficiaries of your property as well as to appoint an executor to manage, carry out this process.
A trust is a legal arrangement which allows a trustee to hold legal title of the property for beneficiaries and can start property distribution before/ at/ after death. A trustee can be a person, a bank, a law firm or an institution
Which property they cover?
A will only covers property under your title only, not assets jointly owned or the ones stated in a trust.
A trust covers only estate transferred under its management. A property legally included in a trust must be put under the name of a trust.
How to validate?
A will must go through probate process performed by a probate court to verify the validity of the will as well as estate administration, ensure that the property is distributed according to the deceased’s wishes.
A trust does not require probate to go into effects, as a result it is more time-saving
The publicity of a will and a trust?
With the engagement of public government, a will is under the public record whereas a trust can remain private among the testator, trustee and beneficiaries.
Which one is better? A will or A trust?
It is hard to tell which one is superior because these two documents have their own strengths and weaknesses:
On the one hand, a will provides a more accomplished detail of your wishes and arrangements such as a guardian of your children or funeral cost settlement which a trust is incapable of doing.
A trust, on the other hand, can provide savings on taxes and disability.
How to tell what I should choose for my case – a will or a trust?
Considering various aspects, it is better to ask for advice from will attorneys and lawyers. They can make professional analysis of your case and propose the most proper options