04/08/2024
TLG is dedicated to helping our clients understand the core differences between a will and trust. If you’re interested in planning your estate be sure to contact TLG, Estate Planning Is Our Passion 301-358-6664.
Insight Into Estate Planning
Most of our clients are familiar with the terms “will” and “trust,” but not everyone knows the differences between the two. Both trusts and wills are useful estate planning tools, but can serve different purposes. Most importantly, both can work together to create a complete estate plan. This is not intended to be legal advice.
The main difference between a will and trust is that only a will passes through probate. For the most part, probate is a process that involves the court who oversees the administration of the will and ensures the will is valid. The court will also administer the property making sure it gets distributed the way the deceased wanted. Meaning, an authenticated will will pass through probate while a trust most likely will not. Courts do not need to oversee the distribution of a trust, which can sometimes save time and money. In addition, many people favor a trust because they can be very private. On the contrary, a will can sometimes become public record.
A trust is a legal arrangement where one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” A trust usually has two types of beneficiaries — one set that receives income from the trust during their lives and another set that receives whatever is left over after the first set of beneficiaries dies.
At a high level these are some of the major differences between a will and a trust but there are more nuances the that distinguish the two. If you are planning for your estate, or would like additional information, contact TLG at 301-358-6664 we’d love to hear from you!
