What is the difference between a trust and a will?

A trust and a will are two different estate planning tools used to protect assets, provide instructions for the future, and carry out the wishes of the person creating the document. In California, trusts and wills are governed by different sets of laws, and each has its own advantages and disadvantages. A trust is a legal document that places assets in the hands of a trustee to manage for the benefit of a designated beneficiary. The person creating the trust, known as a settlor or grantor, transfers ownership of their assets to the trust. The trust document specifies how those assets are to be distributed among the beneficiaries, and the trustee is responsible for managing them according to the terms of the trust. A will is a legal document used to declare the wishes of a person after they have passed away. A will specifies how a person’s assets should be distributed and can also appoint guardians for minor children and vulnerable adults. The executor of the will is responsible for ensuring that the wishes set out in the will are carried out. The main difference between a trust and a will is the timing in which they take effect. A trust takes effect immediately after it is created, while a will only takes effect after the person’s death. Trusts are also more flexible than wills and can be modified in the future as needed. Elder Law in California also requires that certain specific types of trusts be included in estate planning to provide for long-term care needs.

Related FAQs

What is a durable financial power of attorney?
What is a conservator?
What is a Medicaid waiver program?
How can I ensure my elderly parent is not being taken advantage of?
What is the difference between a guardianship and a power of attorney?
How can I protect my assets during my lifetime?
What is a Medicaid spend-down plan?
What is the difference between long-term care insurance and health insurance?
What is a spendthrift trust?
What is a health care directive?

What is the difference between a trust and a will?

Related FAQs

Related Blog Posts