What is the difference between a will and a trust?

When it comes to estate planning law in Maryland, there are two main options to consider: a will and a trust. While both are legal documents that have the same goal of effectively transferring assets and property after death, they are different in structure and purpose. A will is a legal document that goes into effect after death. It outlines how property should be divided among family members or beneficiaries, including the specific pieces of property and how they should be distributed. Wills also allow people to designate guardians for minors and appoint an executor to carry out their wishes after they pass away. A trust, on the other hand, is a legal arrangement that allows you to place assets into a trust fund. When the trust is created, you name a trustee, who is the person who will manage the trust. The trustee is responsible for managing the trust assets and distributing them to the beneficiaries according to the terms of the trust. The main difference between a will and a trust is that a will only goes into effect after death, while a trust is created while you are still alive and can be used for tax or estate planning purposes. In addition, a will must go through the probate process, which can be time-consuming and expensive, while a trust does not go through probate and is generally cheaper and easier to administer.

Related FAQs

What tools are available to help me plan my estate?
What is a Spendthrift Trust and how does it work?
What happens to an estate if there is no will?
Should I include a trust or will in my estate plan?
What is a last will and testament?
What is a letter of intent and how does it work?
What are the different types of estate planning documents?
How can I plan for the future care of my minor children?
What is a guardianship and why should I consider it?
What steps should I take to make sure my estate plan is properly executed?

What is the difference between a will and a trust?

Related FAQs

Related Blog Posts