While most Americans have not taken the time to actually create a last will and testament, people generally are at least marginally aware of the importance of wills. Trusts are a less well known option for determining who will inherit property and other assets. The difference between a will and a trust is that the assets placed in a trust are no longer the legal property of the person who places them in the trust. Instead, they belong to the trust itself which is a separate legal entity in the eyes of the law. Items listed in a will that are not part of a trust are still the legal property of the testator (the person making the will).

This means when a person dies the funds in a trust are treated as belonging to the trust. Everything that is merely listed in the will is treated as part of the deceased person's estate. The estate is subject to the laws of the probate court system. Assets in the trust are governed by the instructions outlined in the trust deed instead and bypass the probate process. Because of this, placing assets in a trust can save a lot of time and money for the beneficiary.