What is the difference between wills and estate trusts?
A will distributes estate assets only after death. A trust designates distribution of assets prior to death, and puts the assets into Trust to be managed by a Trustee until the death of the Grantor/Settlor. The grantor no longer owns the trust property, the Trust does, but he/she can designate use of the assets until he/she dies. A trust protects the property from someone trying to sue or garnish the Grantor’s property because he/she does not own it in title – the Trust owns it; it is no longer in his/her name. Most trusts allow the Grantor the beneficial use of assets until he/she dies like use of the house, vehicles, land, etc. It is protection and designation of beneficiary distribution before the Grantor dies. A trust can be revocable – disolved at the wish of the Grantor and property returned to the Grantor, or Irrevocable – permanent distribution to the Trust for protection or safe keeping and for beneficiaries after death of the Grantor.
