What is the difference between a will and a trust?

A will and a trust are both important tools to help individuals manage the disposition of their property after death. However, they have different characteristics. In Indiana, a will is a document that is used to distribute the deceased’s assets among the individuals they have selected. It typically names a personal representative, and describes how the assets should be divided. A trust, on the other hand, is a legal arrangement created by someone while they are still alive. It specifies how assets are to be managed and distributed upon their death. Trusts may also be used to accomplish other goals, such as reducing estate taxes or protecting assets from creditors. The primary difference between a will and a trust is that a will only takes effect after the owner’s death, while a trust is active during their lifetime. A will is generally less expensive to set up than a trust, and it must be executed in the presence of two witnesses. It is important to note that having a will or a trust is not a requirement in Indiana. However, they can help ensure that an individual’s wishes are honored after their death. Consulting with a qualified attorney is the best way to determine which type of document, if any, is best for an individual’s specific situation.

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