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What’s the difference between a will and a trust in Portland?

April 30, 2010

Both a will and a trust distribute your money and possessions after your death.  

A trust is a will substitute.

It is a legal arrangement in which an individual (the trustor) gives ownership of his or 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 full control of his money and possessions while alive

The trust lists certain people or institutions as beneficiaries. When the trustor dies, these beneficiaries get whatever is in the trust.

A significant difference is that the money, property, and other assets covered by a will must go through a court process called probate before they become the property of the persons named in the will.

With a trust, the money, property, and assets that are in the trust do not go through the probate process. They are distributed directly to the people named as beneficiaries of the trust.

Wills and Trusts are both very important planning documents. An Estate Planning attorney can help you determine which is best for you. - Contact the Estate Planning attorneys at the Law Offices of Nay & Friedenberg at (503) 245-0894 to set an appointment.