Difference between estate and trust

Posted By: Sm Adminon: November 19, 2015In: Miscellaneous

Estate:
An estate consists of all the property a person owns or controls. The estate property may be in his or her name, held in a partnership, in a joint ownership arrangement, or through a trust. Estate property also includes all other movies that would be generated upon the person’s death, such as through the life insurance. An estate can be divided up into three categories: gross estate, residue estate and estate debt.
Trust:
A trust is traditionally used for minimizing estate taxes and can offer other benefits as part of well-crafted estate plan. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries.
Differences:

Basis	Estate	Trust
Definition (www.oxforddictionaries.com)	The use of imagination or original ideas to create something; inventivenessAn area or amount of land or property, in particular.	The action or process of innovating.An arrangement whereby a person (a trustee) holds property as its nominal owner for the good of one or more beneficiaries.
Synonyms	Plantation, farm, parcel and residence	Faith, hope, expectation and confidence
Antonyms	Adversity, boundary, commotion, disorder and dictatorship	Distrust, disbelief, uncertainty and doubt
Types	Its types are: Freehold Fee sample absolute Life Non freehold Tenancy for years Tenancy at will Tenancy at sufferance Concurrent Joint tendency Tenancy by Entirety Tenancy in common	Its types are: Bare trust Discretionary or accumulation trust Heritage or charitable trust Interest in possession trust Mixed trust Nonresident trust Parental trust for minors Settlor interested trusts Vulnerable beneficiaries trusts
History		The origin of the trusts can be found in the eleventh century crusades. Crusading English knights left their manors and estates in the care of trusted friends for safekeeping while themselves away on crusade.
Word origin	It was originated from the Middle English: from Old French estat.	It was originated from the Middle English: from Old Norse traust.
Pronunciation	Eng (UK): /ɪˈsteɪt / /ɛˈsteɪt/ Eng (US): /iˈstāt /	Eng (UK): /trʌst / Eng (US): / trust/
Advantages/Benefits	Its advantages are: Diversification value Yield enhancement Inflation hedge Ability to influence performance	Its advantages are: Limited liability is possible if a corporate trustee is appointed. The structure provides more privacy than a company. There can be flexibility in distributions among beneficiaries. Trust income is generally taxed as income of an individual.
Disadvantages		The disadvantages of trust are: The structure is complex. The trust can be expensive to establish and maintain. Problems can be encountered when borrowing due to additional complexities of loan structures. The powers of trustees are restricted by the trust deed.
Example in Sentence	His father owns a large estate in countryside. Blenheim Palace is one of the greatest country estates in England.	It is funded by the trust funds. We can’t rust computer translation.