In other publications we have emphasized the subject of wills, their peculiarities and the different types that exist; as well as the probate trust and its main characteristics; however, we are going to cover the main differences between the Will and the Probate Trust.

In any of the cases, it is extremely important to have a succession plan, that is, to establish what will become of the estate once you pass away. It is understandable that it is a topic that many prefer to avoid; However, people have perceived that it is a step that will help to give peace and clarity to loved ones in an extremely difficult moment, which is why the realization of one or the other is becoming more and more common.

The will is the way in which a person wants their assets to be inherited, once they pass away; it is done in writing before a Notary Public; and the testator can inherit to relatives, friends or acquaintances, and even to Institutions (generally foundations) if he/she so wishes.

While the probate trust occurs when a person transfers assets or rights, in life, in favor of a third party called trustee, who is obliged to administer them and exercise the rights for the benefit of the person designated as beneficiary in the trust contract. The person appointed as trustee must comply with the instructions and deadlines filed by the settlor.

The main difference between one figure and another is that the will is a legal instrument that comes into force only when the testator dies, while a probate trust takes effect from the moment it is created. This is because the will is designed to determine what will become of the deceased’s assets upon death, and for this a person (executor) is appointed who will be in charge of executing his last wishes.

On the other hand, the probate trust is an instrument that helps to distribute assets or money at any time, whether in life, at the time of death or even time after this happens. In simple terms, the probate trust consists of appointing a third party, through a contract, to be in charge of managing and delivering the estate to the beneficiaries, according to the terms and conditions stipulated by the settlor. The probate trust can be modified as many times as the settlor wants it through addenda; while the will, if there is a change of will of the testator, must be revoked and made again.

If you require advice on inheritance law, ERP Lawyers has its specialized team available on this matter. Do not hesitate to contact us!