Both a will and a trust distribute your cash and possessions after your death. A trust is a will replace.
It is a legal plan in which a person (the trustor) offers ownership of his/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 possessions while alive.
The trust lists certain individuals or institutions as recipients. When the trustor passes away, these recipients get whatever is in the trust.
A significant distinction is that the cash, property, and other assets covered by a will must go through a court process called probate prior to they become the property of the individuals 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 distributed straight to the individuals named as recipients of the trust.