What is the difference between a trust and a will?
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This video is for informative purposes only. It is not intended as legal advice. Small details can have big consequences. Want to know more about Estate Planning, schedule a free consultation with us.
So what is the real difference between a trust and a will? Both legal documents that can be used to transfer assets, but the methods that they use and the court involvement that's required is very different. A will is a set of instructions to the probate court. So, it's only ever going to be involved when an estate is already going through the probate process.
A trust is set up to be entirely out of court and it can function in a very similar way where you say in a trust who you want things to go to, under what conditions, who's going to be in charge of things, who's involved in administering everything. A trust has some advantages in that it stays out of the court process, and it's got a lot more flexibility - you can have the trust go for a longer period of time - while a will only governs for a short period of time after you've passed away.
Also, once all the assets are handed out, a trust can last for the entirety of, for example, a child's childhood and can last as long as it needs to stay open. So, they can be similar and function, but they get there in very different ways.
This video is for informative purposes only. It is not intended as legal advice. Small details can have big consequences. Contact an attorney for more information. Book a Free Consultation here.