What is the primary distinction between a will and a trust?

The primary distinction between a will and a trust is that a will outlines how a person's assets will be distributed upon their death, while a trust is a legal entity that holds and manages assets for the benefit of designated beneficiaries. When someone creates a will, it becomes effective only after their passing, and it specifies who will inherit their assets, which can include money, property, and other belongings. The process of executing a will typically involves probate, where the court validates the will and oversees the distribution of the assets according to the deceased's wishes.

In contrast, a trust can be established during a person's lifetime and can be used to manage their assets while they are still alive, often providing more control over the distribution and use of those assets. Trusts can help avoid probate, which can streamline the transfer of assets and maintain privacy regarding the deceased's financial matters.

This distinction illustrates the fundamental differences in purpose and functionality between the two instruments, highlighting how each serves its own unique role in estate planning.