What is the difference between an estate and a trust?

The key difference between an estate and a trust is the way they are administrated. An estate is someone’s property and financial assets that is passed on to the heirs when they pass away. It’s typically managed by an executor or a personal representative that is appointed by the court. This executor is responsible for distributing the assets according to the estate’s wishes or the wishes of the court. A trust, on the other hand, is a legal agreement established by someone, often referred to as a grantor, to provide assets and manage assets for another person, known as a beneficiary. The trust is managed by someone called a trustee whose responsibility is to manage the trust according to the grantor’s wishes and distribute assets according to the trust’s instructions. The key difference is that while an estate is managed according to the wishes of the deceased person or the court, a trust is managed according to the wishes of the grantor. Additionally, an estate passes through the court system, while a trust does not. In Washington, both an estate and a trust is subject to the laws of probate. This means that both an estate and a trust need to be settled in accordance with the state’s laws and regulations in order for the assets to be distributed.

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What is the difference between an estate and a trust?

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