What is the difference between a will and a trust?

Wills and trusts are two estate planning tools used to distribute assets after death. The primary difference between the two is when they take effect. A will is effective upon the death of the maker, known as the testator, and outlines the desired distribution of assets. A trust is created while the maker is still alive, and the assets are transferred to the trust and managed by a trustee for the benefit of a beneficiary. A will is a set of instructions that take effect after the death of the testator. The will dictates how the assets are to be distributed and sets forth the wishes of the testator regarding their final arrangements. The will must be created according to the laws of the state in which the testator resides and is filed with the court after death. A will is often used to name an executor, who is then responsible for carrying out the instructions contained within the will. A trust is a legal entity created by a maker for the purpose of holding property and assets during their lifetime and after their death. The maker, or grantor, of the trust transfers the assets to the trustee, who manages those assets for the benefit of the beneficiaries of the trust. The trust is created according to the laws of the state in which the maker resides and can specify instructions for managing and distributing the assets to the beneficiaries. Both wills and trusts can be used by individuals to ensure that their final wishes are carried out and their assets are distributed according to their wishes. The differences between the two are mainly that a will is effective upon death and a trust takes effect while the maker is still alive.

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