What is the difference between a will and a trust in estate planning?

As a lawyer, I can explain the key differences between wills and trusts in estate planning. In general, both wills and trusts are used to distribute assets to beneficiaries after someone passes away. However, there are some important distinctions between the two.

A will is a legal document that outlines how an individual's assets should be distributed after their death. It typically designates who will receive specific properties, assets, or sums of money, and can also appoint guardians for any minor children. Wills go through probate, which is a court-supervised process that ensures the will is valid and that the deceased's wishes are carried out. Any assets that are not assigned in the will may be distributed according to state law.

A trust, on the other hand, is a legal entity that holds assets for the benefit of designated beneficiaries. Rather than passing through probate, trusts are administered by trustees, who are responsible for managing and distributing the assets according to the trust's terms. There are different types of trusts, including revocable and irrevocable trusts. Revocable trusts can be changed or revoked by the person who created them, while irrevocable trusts cannot. Trusts can be used for a variety of purposes, such as providing for the care of a disabled family member, protecting assets from creditors, or ensuring that assets are distributed in a specific way.

In terms of advantages, trusts can offer greater flexibility and control over the distribution of assets, as well as potential tax benefits. However, trusts may also be more complicated and expensive to create and administer than wills. It's important to note that both wills and trusts can be valuable tools for estate planning, and the best option may depend on an individual's unique circumstances.

If you are considering creating a will or trust, it's important to consult with an experienced estate planning attorney to determine which option is best for your goals and needs. Additionally, it may be necessary to periodically review and update your will or trust to ensure it reflects any changes in your family or financial situation.