Common Questions - Difference Between Trust-based Planning and Will-based Planning

Question: What is the difference between a will-based plan and a trust-based plan?

Answer: Some key differences between Wills and Trusts are -

   Will:

A Will is legal document that states how your assets should be distributed after your death.

·         A Will is subject to probate

·         Only effective after your death

·         Can be simpler than a trust

Trust:

A Trust is a legal entity you create to hold and manage your assets during your life and distribute them after death according to your instructions.

·         Avoids probate

·         Not public record

·         Controls assets during your life, including during incapacity