What is the difference between a trust and a will?

The difference between a trust and a will is significant when it comes to Elder Law in South Carolina. A trust is a legal document that is established to manage and distribute assets to beneficiaries upon the death of the trustmaker. The trustmaker has the ability to control how assets are managed prior to death, designate who will receive specified assets upon death, and potentially reduce estate taxes. This document gives clear instructions on how assets should be managed, and has the power to transfer assets to specific individuals. A will, however, is used to identify who will receive assets from the estate when the owner passes away. Unlike a trust, a will does not impact how assets are handled prior to the death of the testator and does not reduce or protect from estate taxes. Wills typically go through probate, which is a court-supervised process of authenticating the will and distributing assets according to the instructions of the testator. In short, a trust can be used to manage assets while alive and efficiently distribute assets upon death with the potential of reducing estate taxes. A will, on the other hand, is used to designate who will receive assets when the owner passes away and does not offer any tax benefits.

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What is the difference between a trust and a will?

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