What is the difference between a trust and an estate?

Trusts and estates are the two main legal structures for transferring assets to your heirs and beneficiaries. Each works in critically different ways. Estates make a one-time transfer of your assets after death. Trusts, meanwhile, allow you to create an ongoing transfer of assets both before and after death. Here’s how each one works.

Can a will and a trust be used together?

A will takes effect upon death but trusts can be used both during the lives and after the deaths of the grantor, or creator. Wills and trusts can provide effective estate planning when used separately or together. A will is a legal document that defines how affairs are handled and assets distributed after death.

Should I create a trust or a estate plan?

Most of the time, if they do not have a complex situation, basic estate planning documents will suffice, and in turn be more affordable than establishing a trust. This type of trust could be good in certain circumstances, such as when you: Don't trust your kids. Some may laugh at this, but there are certainly times when this can be the case.