What is the difference between a will and a trust?

A will and a trust are two different legal instruments used for estate planning in Pennsylvania. Both documents are used to define a person’s wishes for their assets and how those assets should be distributed after they pass away. The main difference between a will and a trust is when they become effective. A will is only effective when a person dies, and is subject to the probate process. The probate process is a court-supervised process to authenticate the will and distribute the assets. A trust, on the other hand, is effective at the time the trust is created and is outside of the probate process. A will outlines how a person’s estate should be distributed after their death. It can direct how real and personal property should be distributed, make specific gifts to individuals, and appoint an executor to handle the distribution of assets and other details. A trust, on the other hand, is a legal agreement between the creator of the trust (“grantor”) and the trustee. The grantor transfers legal title of certain real or personal property to the trustee, who controls and manages the trust for the benefit of the beneficiaries. Trusts can be revocable or irrevocable, depending on the type of trust created. With a revocable trust, the grantor can make changes to the trust or revoke it entirely. Irrevocable trusts cannot be changed or revoked and are often used with tax planning or asset protection in mind. Overall, wills and trusts are both useful tools to prepare for estate planning in Pennsylvania. They both have their advantages and disadvantages, and should be chosen based on a person’s individual needs and goals.

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