What is the Difference In Between a Will and a Trust?
Both a will and a trust distribute your cash and ownerships after your death. A trust is a will substitute.
It is a legal arrangement in which an individual (the trustor) offers ownership of his/her property to a legal entity called a trust, which is handled by one or more trustees.
The trustor can be a trustee, so that she or he still has complete control of his money and ownerships while alive.
The trust lists specific people or organizations as recipients. When the trustor passes away, these recipients get whatever is in the trust.
A significant difference is that the loan, property, and other possessions covered by a will should go through a court process called probate prior to they become the property of the persons named in the will.
With a trust, the cash, property, and assets that remain in the trust do not go through the probate process. They are distributed directly to individuals called as recipients of the trust.