What Is The Difference Between A Will And Trust?

Two of the most common estate planning tools used to distribute assets after death are a will and a trust. Both are intended to pass on your assets, but they do so in different ways. Understanding the distinctions between a will and a trust can assist you in determining which is best for you and your family. Matthews & Jones, LLP can help clarify some of the differences between the two.

Creation

A will is made by a person, whereas a trust is made by a grantor. The grantor is usually the person who will benefit from the trust. A trust is more complex than a will, but it allows for the grantor to better protect their assets and control how the assets are used after death.

Execution

A will must be carried out according to the laws of the state in which the individual resides. A trust, on the other hand, can be carried out without regard for state laws. A trust allows for more customization of how a deceased individual’s assets are distributed.

Post-Mortem Administration

Before assets can be distributed after a person dies, his or her will must go through the probate process. A trust, on the other hand, does not require probate and can be carried out immediately following the death of the grantor.

Asset Protection

After death, a will is a public document, so anyone can view it. A trust, on the other hand, is a private document whose terms are known only to the grantor and trustee. This makes it a more secure asset protection tool. Since the trust is not accessible to the public, it can better protect assets from creditors, lawsuits, and other potential threats.

Both a trust and a will have their benefits and drawbacks. The law office of Matthews & Jones has extensive knowledge in the areas of wills and estate law, so contact us today to see which option would be best for your planning.