What is the difference between a will and a trust?

A will and a trust are both important parts of estate planning in Florida. While both are used to manage finances and assets after death, there are major differences between them. A will is a legal document that details how a person’s assets and properties should be distributed after their death. A will must go through the probate court in order to be legally enforced. This is a court-supervised process that can be lengthy and costly. A trust is a legal entity that holds a person’s assets and property in trust for the benefit of their beneficiaries. The trust is managed by a trustee who acts according to the instructions in the trust document. The trust is not subject to probate court review, and it avoids the time and expense associated with probate. A will is better for smaller and simpler estates, but trusts are often preferred for larger estates and to minimize tax implications. Both wills and trusts can help protect a person’s estate from creditors and ensure that their assets are distributed as they have planned. For those with substantial estates, both types of estate planning documents can be used in conjunction.

Related FAQs

What is a survivor's trust?
What is an irrevocable trust?
What is the best way to plan for end-of-life care?
How do I create a trust for a minor?
What is a reverse mortgage?
How can I ensure that my elderly parent’s wishes are respected?
What is a joint trust?
What is a living trust and what are the advantages and disadvantages of setting up one?
How can I ensure my elderly parent's wishes are respected after they pass away?
What is a trust fund?

What is the difference between a will and a trust?

Related FAQs

Related Blog Posts