What is the difference between an estate and a trust?

The difference between an estate and a trust is an important concept to understand when it comes to probate law in California. An estate is a legal entity used to manage and distribute the assets of a deceased person, while a trust is a legal arrangement that allows another to manage assets on behalf of another. An estate is established through probate court when a person has passed away. The court assigns an executor to manage the estate and distribute the deceased’s assets as directed in the will. The executor may also be responsible for paying off creditors and any other remaining debts. The executor will file the necessary paperwork with the probate court to close the estate. A trust, on the other hand, is established by a living person, who is referred to as the trustor. The trustor creates the trust and appoints someone to manage the trust property on behalf of the trustor. The trustor specifies the conditions and instructions that the trustee must follow when managing the trust property. A trust is not subject to probate court like an estate, and can also help provide tax benefits. Ultimately, the key difference between an estate and a trust is that an estate is established after a person dies, while a trust is established while a person is still alive. Both are important concepts to understand when it comes to probate law in California.

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