A will is a legal instrument that makes a disposition of property (distribution to specific people and entities). The individual creating the will is called a “testator.” The executor (a person appointed by the testator in the will) oversees the disposition.
A trust is created by an owner of property. In a trust, a trustee holds legal title to the property. This person is under a legal obligation to manage, invest, and safeguard the trust assets. Assets are distributed to designated individuals, called beneficiaries.
Trusts are created by “settlors.” Trusts are legal interests in property. The interest is held by a trustee, or trust manager. The trustee holds the interest for the benefit of trust recipients. The recipients, to whom trust assets are transferred by the trustee, are called beneficiaries.
There are also trusts that are established for specific purposes. For example, if the settlor does not want beneficiaries to access the trust until they turn 18, the settlor can create a spendthrift trust. The trustee will enforce the “no access until 18” clause. When a beneficiary turns 18 years-old, then that person can be entitled to proceeds, under the trust terms.
Other specialized trusts include pet trusts and gun trusts, among others. Pet trusts provide for the continued care of a pet. Gun trusts provide for legal transfer of a firearm to a beneficiary.