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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning

Under Indian succession practice, which feature distinguishes a Will from a trust as an estate planning tool?

A Will operates only after the testator's death, while a trust can be set up to take effect and hold assets during the settlor's lifetime. This lifetime operation is the key difference, since a Will remains revocable and ineffective until death.

  1. AA Will takes effect only after the death of the testator, whereas a trust can operate during the settlor's lifetimeCorrect
  2. BA Will can never be revoked, whereas a trust can always be revoked
  3. CA Will requires registration to be valid, whereas a trust does not
  4. DA Will transfers assets immediately on signing, whereas a trust transfers only after death

Explanation

A Will speaks only from the testator's death and can be changed until then. A trust can be created to function during the settlor's life and continue afterwards. Revocability of a Will is the opposite of option two, and registration of a Will is optional, not mandatory.

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