What is the difference between a will and a trust?

A will and a trust are both legal documents used in estate planning, but they serve different purposes. A will, also known as a last will and testament, is a document that spells out how a person’s assets and property should be distributed after they die. In North Carolina, wills must be in writing, signed by the person making the will (called the “testator”), and witnessed by two people who are not named in the will. Wills typically take effect once the testator dies. A trust, on the other hand, is an arrangement where a person, known as the “grantor” or “settlor,” transfers ownership of their assets to another person or organization, known as the “trustee.” The trustee is responsible for managing the assets and distributing them according to the grantor’s wishes. In North Carolina, the trust must be written and signed by the grantor and two witnesses. Unlike a will, a trust can take effect while the grantor is still alive. In summary, a will is a document used to distribute a person’s assets after they die, while a trust is an arrangement used to manage and distribute a person’s assets while they are still alive. Both are important estate planning tools used in North Carolina, but they serve different purposes.

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