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What
is Probate?
Probate
is a legal process where a court confirms the authenticity
of a will. Probate is required if any third party is involved
who needs court approval before taking instructions from an
executor.
For
example, financial institutions do not normally release assets
of an estate to an executor without this proof. To probate
a will, the executor needs to submit the original will, a
list of assets and property in the estate and an application
form to the court.
After
court approval is obtained, the executor can distribute assets
in accordance with the terms of the will.
What
is a Trust?
A
trust is a legal arrangement where an owner (Settlor) transfers
property or assets to a trustee who may be an individual or
financial institution. The trustee manages the assets or property
for the Beneficiary who may receive income, assets, or property
from the trust. A trust takes effect after your death is called
a Testamentary Trust while one set up while you are alive
is called a living or Inter Vivos Trust.
The
primary purpose of a trust is to allow you to transfer ownership
of assets to your beneficiaries while maintaining control
over the assets.
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