Will vs. Trust: What’s the Difference?
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
| Will | 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.
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