What is the difference between a will and a trust?

When it comes to estate planning law in Arizona, it is important to understand the difference between a will and a trust. A will is a written document that dictates how your estate, or the assets and property you own, should be distributed when you die. A will may also contain provisions for any minor children you may have. On the other hand, a trust is an arrangement whereby a person, referred to as the “grantor”, transfers ownership of their property to a trustee, who will then manage the property according to the grantor’s instructions. The trust document specifies who will receive the property after the grantor dies. In comparison, a will only becomes effective upon a person’s death, while a trust is effective from the moment it is created. Furthermore, a will is subject to probate–a process of distributing the estate that takes place in the courts–while a trust can avoid probate entirely. Additionally, a trust can provide for the management of assets during the lifetime of the grantor, while a will does not have this capability. In summary, the main difference between a will and a trust is that a will is a document that dictates how property is to be distributed when you die, while a trust is an arrangement where a grantor transfers property to a trustee to be managed according to the grantor’s instructions. A trust is also effective from the moment it is created, whereas a will only becomes effective after a person’s death. Lastly, a trust can avoid probate, while a will is subjected to it.

Related FAQs

How can I protect my business interests after my death?
What is a revocable living trust?
What is an estate inventory and why should I create one?
What legal documents will I need to establish my estate plan?
What is a durable financial power of attorney?
What is a gifting program and how does it work?
What is the difference between a living trust and a living will?
What is a durable power of attorney?
What is a Living Will and how does it work?
What is an inheritance trust?

What is the difference between a will and a trust?

Related FAQs

Related Blog Posts