What is the difference between a will and a trust?
A will and a trust are two different estate planning documents that are used to handle the distribution of an individual’s assets when they pass away. In California, both documents are legally binding and are used to protect an estate. A will is a document that states how an individual’s assets are to be divided after they have passed away. When these documents are created, an executor is named to ensure that the wishes of the individual are followed. The executor has the job of carrying out the instructions of the will and distributing the assets according to the wishes of the deceased. A trust is a legal instrument that is used to protect an individual’s estate. The trust is created while the individual is still alive and is typically used to provide for future beneficiaries. The individual (known as the grantor) can name a trustee to manage the trust and the assets within it. The trustee then has the responsibility of overseeing the trust and distributing the assets according to the instructions of the grantor. Both a will and a trust are important documents to have in an estate plan in California. A will is used to distribute the assets of an individual after they have passed away, while a trust can be used to ensure that assets are protected and taken care of while the individual is still alive.
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