A trust, like a will, is a legal document used to distribute property to heirs. When people use a trust to manage their property while they re still alive, it s called a living trust. Other people use a trust only to distribute property after death, which is called a testamentary trust. Some use both a trust and a will. A trust usually avoids probate, the legal process in which debts are paid off and assets are distributed.
Probate can be time consuming and expensive.
Unlike a will, a trust doesn t become public after the person dies. Only the trustee the person who manages the trust and the beneficiaries are told about it. Since it s not public, some attorneys say it s less likely to be contested. A trust is more flexible, which can be a plus for people who have tangled relationships, such as a parent who has children from different marriages. Trusts can parcel out money over time, instead of all at once.