What is the Difference Between a Will and a Trust?
Both a will and a trust distribute your money and belongings after your death. A trust is a will substitute.
It is a legal plan in which an individual (the trustor) offers ownership of his/her property to a legal entity called a trust, which is managed by one or more trustees.
The trustor can be a trustee, so that he or she still has complete control of his cash and belongings while alive.
The trust lists certain individuals or organizations as beneficiaries. When the trustor passes away, these recipients get whatever is in the trust.
A substantial difference is that the cash, property, and other possessions covered by a will must go through a court procedure called probate prior to they end up being the property of the persons called in the will.
With a trust, the cash, property, and assets that are in the trust do not go through the probate process. They are dispersed straight to the people named as recipients of the trust.