A Will (Last Will and Testament) is a document that, if properly executed, directs distribution of a person's assets after his or her death. The distribution is accomplished through a process called probate administration. See my upcoming post on who needs a Will and who does not.
A Trust is a legal entity that owns assets and manages and distributes these assets in accordance with Settlor's instructions, which are usually written out in a Trust Agreement. A Settlor (or Settlors, also sometimes called Grantor(s)) are persons that establish and fund the Trust, as well as establish terms of the Trust. Trust administration is a private process, as opposed to probate administration, which is public court record.
Probate (or Probate Administration) is a court-supervised process of distributing assets and paying debts of a person after their passing. The assets are distributed in accordance with the terms of that person's Will, or, if no Will was made, then in accordance with state law.
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment