TED STARR ANSWERS FREQUENTLY ASKED QUESTIONS
In this video blog, you’ll get the answer to this frequently asked question: What is the difference between a will and a trust?
Hi, my name is Ted Starr. I’m an attorney in Pinellas Park, Florida and I’m here to answer some questions. The question is: What is the difference between a will and a trust? There’s a big difference between a will document that you do, which is typically called your last will or your last will and testament and a trust that you create to owned property to sometimes facilitate the transfer of the property if you pass away. A trust is a form of ownership of property were you hold property in the name of a trust and you transfer property to be owned by the trust. The trustee, typically you if you set up a trust, but it can be anybody, is now the controller of that property. When you do your will, they’re just stating what will happen when you pass away, you’re not necessarily transferring any assets or changing the ownership of any asset with your will document. With a trust, you’re planning on changing the ownership of the asset in anticipation of your death or sometimes to transfer control of that asset to another person. So a trust is very different from a will and you shouldn’t confuse the two. If you do a trust, sometimes you’ll do a will as well. We call that a pour over will were you will leave your assets to your trust if you haven’t already transferred them to a trust. Just because you do a trust, you still would potentially want to do a will as well. So there’s a big difference between a will and a trust and the two are not interchangeable. And while you may not necessarily need a trust, you probably do need a will.