A trust and a will are two legal documents that no estate plan should be without, yet they serve entirely different functions. Both documents work together to ensure your wishes are fully carried out after you die. A will becomes effective immediately upon your death, whereas a trust goes into effect at the time it is established.
A will specifies how your property is to be distributed after your death. The will appoints a legal representative, commonly known as an executor, to carry out your wishes. Wills only cover property that is in your name when you die. They do not cover property held in a joint tenancy or trust. A will must go through probate and becomes public record. A will allows you to give specific instructions as to your funeral arrangements and/or appoint a guardian for surviving children or dependents. A trust does not.
Trusts are arrangements between a person or institution (trustee) and another individual (beneficiary) in which the trustee holds legal title to property for the beneficiary. Unlike wills, trusts can be used to distribute property before your death, at the time of your death or after your death. Trusts cover only property that is transferred to the trust. A trust does not have to go through probate, nor does it become public record.
