As a lawyer, I can explain the difference between a will and a trust in estate planning.
A will is a legal document that outlines how a person's assets should be distributed after their death. It typically names an executor, who will be responsible for carrying out the person's wishes. A will only becomes effective after the person's death and may need to go through probate court to be validated.
A trust, on the other hand, is a legal instrument that can be created during a person's lifetime or in their will. It allows the person to transfer their assets to a separate legal entity, managed by a trustee, who will then be responsible for administering the trust according to the person's wishes. A trust can help avoid probate court and may provide more flexibility in distributing assets.
In summary, a will is a document that specifies how assets should be distributed after death, while a trust is a separate entity that manages assets and distributes them according to the person's wishes during their lifetime and after death.
It's important to note that the use of a will, trust, or both will depend on each person's individual circumstances and goals. Consulting with a licensed attorney experienced in estate planning can help determine the best course of action for each specific situation.
Furthermore, it's important to keep in mind that laws related to wills and trusts vary by state, so seeking legal advice from a licensed attorney in the relevant jurisdiction is crucial in ensuring the proper execution and implementation of one's estate plan.
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