Will vs. Trust: An Overview
A will is a legal document that provides instructions for distributing property to beneficiaries after death. A trust is a legal structure that allows an individual (the grantor or trustor) to transfer assets to a trustee for management and distribution according to the grantor’s wishes. Trusts can be used both during a person’s lifetime and after death, while wills only take effect after death. Both can be practical estate planning tools, either separately or together.
Key Takeaways
A will is a legal document that specifies how your affairs will be handled and how assets will be distributed after death. A trust transfers assets to a trustee, who manages them according to the terms specified by the grantor for the benefit of designated beneficiaries. Trusts can be structured to operate during the grantor’s lifetime or after death, while wills are only effective upon death.
Will vs. Trust: Key Differences
