What’s the difference between a will and a trust?
Quick Answer:
A will goes into effect after you die and names who should receive your assets. A trust can take effect while you're alive, giving someone control over your assets and often avoiding probate.
Full Explanation
What is a Will?
A will is a legal document that:
- Names who should receive your assets after death
- Appoints a guardian for minor children
- Becomes active only after you die
- Typically goes through probate (a legal process)
What is a Trust?
A trust is a legal entity you create to:
- Hold and manage assets
- Distribute them according to your instructions
- Avoid probate in many cases
- Take effect while you’re alive (living trust)
Key Differences
| Feature | Will | Trust |
|---|---|---|
| Takes effect | After death | While you're alive |
| Probate | Required | Usually avoids |
| Privacy | Becomes public | Remains private |
| Cost | Typically lower | May require setup fees |
HooValu Tip
HooValu helps you create and store both wills and trusts securely in your Vault, and share them with the right people when the time comes.
Next Steps / Related Articles
- [How to create a will using HooValu]
- [What is probate and how does it work?]
- [How do I share documents in my Vault?]
Tags: wills, trusts, estate planning, probate, HooValu features