How Do You Make A Simple Living Trust?
Also called an inter vivos trust, a living trust is an entity that possesses ownership of assets on behalf of someone else while the creator is still alive. Living trusts serve to keep assets out of probate. Living trusts are subject to income tax, since the granter receives the income. Living trusts are also subject to estate tax upon death. Generally, a granter (creator of the trust) transfers property or cash to the trustee. In a living trust, however, the granter may also serve as the trustee. Choose the trustee(s). The structure of a trust largely depends on its intended purpose. Living trusts are primarily made to avoid probate. The granter may appoint himself as the trustee in order to remain in control of the assets in his lifetime. In such case, the granter will have to name a successor trustee after the granter’s death. Select trust beneficiaries. The granter of a living trust usually names himself as trust beneficiary as well in order to retain the beneficial ownership of hi
