5 differences between a Will and a Trust:

To paraphrase a famous quote by Benjamin Franklin “in this world nothing can be said to be certain,
except death and taxes. It may be unpleasant but it is truth. While you may not be able to control
when your life comes to an end, you can certainly decide how your assets are distributed after your
death.

Everyone has heard the terms "will" and "trust," but not everyone knows the differences between
the two. Both are useful estate planning devices that serve different purposes, and both can work
together to create a complete estate plan. Out of the two the one which suits you better will come
down to your personal situation and concerns.

Will

As the name suggests, a will refers to a wish. a will is set up under Indian Succession Act 1925. A will
is simply an expression of one’s wishes on paper concerning how and to whom assets are to be
distributed in the event of one’s death. Once made by the testator it can only be revoked during his
lifetime. If a person has created multiple will for the distribution of his assets, then his ‘latest will’
will be executed.

e-will, or digital will, as the phrase suggests, is making a will online-in a proper and secured manner.
It provides digital data of your assets, financial investments, properties and to whom you want to
give your property, money and other assets after demise. It is safe, secure and time saving. One can
make a will online in just 30 minutes. A Digital Will helps you to get rid of many contradictions and
loopholes while going through the process. One can edit and change the will accordingly as per your
wish without the hassle of hiring a lawyer. There are websites such as, www.ezeewill.com,
www.legaljini.com and www.hdfcsec.com where you can prepare the will at a fractional cost
compared to the traditional Pen & Paper method of making a will.

Trust

A trust is a legal structure set up under the Indian Trust Act, 1882, into which a person (called a
‘settlor’) during his lifetime can transfer assets (financial or non-financial) to be managed by a
person (called a ‘trustee’) for the ultimate benefit of another (called the ‘beneficiaries’).

The legal document that creates the trust determines how it will function, along with specifications
of all conditions for distributions to be done, in the present and future is called a ‘trust deed’. The
subject matter of the trust is known as trust property.

One can form a trust online. There are websites such as, http://www.tratoindia.com, where you can
make a trust at a fractional cost compared to the traditional Pen & Paper method of making a trust.

Slide 4: As both are used to manage and distribute the assets of a person, many people get puzzled
between the two.

Now, Let us discuss 5 differences between Will and Trust:

Wills vs Trust

Effective: A will goes into effect only after you die and determines who will receive your property at
your death and it appoints a legal representative to carry out your wishes. , while a trust takes effect
as soon as you create it and can be used to begin distributing property before death, and after
death.

Assets covered: A will covers any property that is only in your name when you die. It does not cover
property held in joint tenancy or in a trust. A trust, on the other hand, covers only property that has
been transferred to the trust. In order for property to be included in a trust, it must be put in the
name of the trust.

Cost: The cost of making a will depend on whether the will is made online or offline. The online
version of will is economical compared to the offline version whereas the cost of making a trust is far
higher. The charge is either determined as a percentage of the assets moved to the trust or a fixed
fee.

Probate: Another difference between a will and a trust is that a will passes through probate. Probate
refers to when, a court oversees the administration of the will and ensures the will is valid and the
property gets distributed the way the deceased wanted. A trust passes outside of probate, so a court
does not need to oversee the process.

Published: A will, will remain a private document till the testator is alive. It becomes a public
document when the testator passes away. On the other hand, trust, is a private document. No
details of the trust are published publicly even after the death of the trust owner.

While both vehicles can accomplish similar estate planning objectives, a trust is generally more
flexible than a will. A trust can allow you to exert greater control over the distribution of your assets;
for example, if you choose to leave a large sum to a minor, a trust can establish how and when the
child will receive the money after you’re gone. You can also set up a trust to fulfil specific objectives
like paying for a child’s education or pursuing your philanthropic causes.

However, those advantages come with additional costs and complexity. Once you create a trust, you
can’t simply dissolve it the way you can a will. You must also deal with the added complexity of
managing the trust during your lifetime and designate a trustee to handle affairs after your death.
The chief benefit of a will is that it is typically low cost to set up and change.

Either a will or a trust may be appropriate for your estate depending on your circumstances and
neither is best for all situations.

The ultimate decision about which estate planning vehicle is best for you entirely depends on your
personal circumstances and family structure.

Trust and Will, both are effective tools for estate planning that manage the transfer of assets, as
they permit you to nominate a person to look after the transfer or distribution of assets to your
loved ones.