What is the Distinction In Between a Will and a Trust?
Both a will and a trust distribute your loan and ownerships after your death. A trust is a will replace.
It is a legal plan in which an individual (the trustor) gives ownership of his or her property to a legal entity called a trust, which is managed by several trustees.
The trustor can be a trustee, so that he or she still has full control of his loan and belongings while alive.
The trust lists particular people or institutions as beneficiaries. When the trustor dies, these recipients get whatever remains in the trust.
A significant difference is that the money, property, and other possessions covered by a will must go through a court process called probate before they become the property of the individuals called in the will.
With a trust, the money, property, and assets that remain in the trust do not go through the probate procedure. They are dispersed directly to the people called as recipients of the trust.