What’s the difference between a will and a trust?
Both a will and a trust are important estate planning documents that serve different purposes but can work together to ensure a complete and legally sound estate plan. A primary difference between the two is that a will goes into effect only after the death of the individual it was written for, whereas a trust goes into effect as soon as it is written. The will directs who will receive the property upon the death of its owner and appoints a legal representative to carry out their wishes. A trust, however, can be used to start distributing property before death as well as after. It acts as a legal arrangement where an individual or institution called a trustee holds legal title to property for another person (the beneficiary).
To learn the ins and outs of estate planning you can check out our video series on our estate planning page.