Final answer:
A deed of settlement is used when an individual is appointed to settle the estate of a deceased person, which dictates the responsibilities of the executor or administrator in the distribution of the estate. Wills and trusts are tools that dictate how a person's assets will be managed and distributed upon their death.
Step-by-step explanation:
When an individual is appointed to settle the estate of a deceased person, the legal document that is often used is called a deed of settlement. The deed of settlement, also known as a trust deed, outlines the responsibilities of the person managing the estate, referred to as the executor or administrator.
This person is tasked with distributing the estate in accordance with the deceased's will or, if there is no will, according to state intestacy laws.A will is a written document in which an individual specifies how their assets should be distributed after their death.
If someone dies without a will, known as dying intestate, the distribution of their assets is then managed by the courts based on intestacy laws. Conversely, a trust is an entity created to hold assets for the benefit of certain persons or entities, with a trustee managing the trust. Upon the death of the individual who created the trust, the trustee oversees the transfer of assets in accordance with the terms of the trust.