What is the difference between a trust and a will?

A trust and a will are both legal documents used to plan for the transfer of assets after one’s death. However, there are some distinct differences between the two. A trust is an arrangement that allows a third party, such as a trust company, to control and manage assets on behalf of another person or group. The assets are placed in the trust and managed by the third party, who distributes them according to specified instructions. There are many advantages to creating a trust, including asset protection from creditors, tax advantages, and avoiding the cost and length of probate court proceedings. A will, on the other hand, is a legal document stating how a person wants their assets to be distributed after death. It can include instructions on who will receive the assets, who will be the executor of the will and legal guardian of minor children, and any other provisions or conditions of the will. In California, an individual’s will must meet certain legal requirements in order to be considered valid. Additionally, any property owned in a will must go through the probate court process, which can be costly and time consuming. In summary, the main difference between a trust and a will is that a trust is managed by a third party, while a will is the individual’s instructions on how their assets should be distributed after death. Trusts generally provide more asset protection, tax advantages, and avoid probate court, while a will must go through the probate process and is subject to certain legal requirements.

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What is the difference between a trust and a will?

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