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.