The main difference between a Will and a Trust is that a will becomes effective only after a person’s death whereas a trust can be effective during a person’s lifetime and after their death.
Before we move to more differences, let’s first understand Will and Trust:
- Will: A Will is a legal document that specifies how a person’s assets will be distributed after their death.
- Trust: A Trust is a legal arrangement where a person transfers their assets to a trustee who holds and manages the assets on behalf of beneficiaries.
Now, let’s get to Will vs Trust:
Major differences between Will and Trust
|A Will is a public document that must go through probate court.||A Trust is a private document that does not have to go through probate court.|
|A Will can only distribute assets after a person’s death.||A Trust can distribute assets during a person’s lifetime and after their death.|
|A Will can only distribute assets in a lump sum.||A Trust can distribute assets in installments or in a manner specified by the person creating the Trust.|
|A Will can name guardians for minor children.||A Trust can provide ongoing management of assets for the benefit of minor children or other beneficiaries.|
|A Will can be changed or revoked at any time before a person’s death.||A Trust can be changed or revoked during a person’s lifetime, but may be irrevocable after their death.|
So, these are the main differences between the entities.
You can see other “differences between…” posts by clicking here.
If you have a related query, kindly feel free to let me know in the comments below.