What is the difference between a will and a trust?
A will and a trust are two separate documents that serve different purposes in Michigan’s inheritance law. A will is a legal document that outlines how a person’s assets will be distributed after their death. It is often used to designate a guardian for minor children or to leave money to certain people in the form of dependents. A trust is a legal document that is set up during an individual’s life to protect their assets and provide them with more control over how their estate is divided upon their death. A will generally takes effect after an individual’s death and sets forth instructions for distributing their assets to the people they designate. A trust, on the other hand, is a way to manage assets while an individual is still alive, and can be used to avoid probate. It is also used to protect assets from creditors and to lower estate taxes. A trust can be created with specific instructions, such as: how assets are to be divided, how the trust is to be managed, or how the assets can be used. In summary, a will determines how a person’s assets will be distributed after they die, while a trust allows a person to manage and protect their assets while they are still alive. While both documents are important for inheritance law in Michigan, they serve very different purposes.
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