What is a Living Trust and how do I establish one?
A Living Trust is established by executing a formal written document which appoints a Trustee to take possession of assets transferred into the Trust and directs the Trustee how to administer or manage the assets in the Trust. The Living Trust allows the person setting up the Trust (usually called the “Grantor” or (“Settlor”) to designate themselves as the initial Trustee and then to designate a successor Trustee if the Grantor dies or becomes incapacitated. The Living Trust authorizes the Trustee to exercise certain specific powers in managing the Trust without having a probate court involved. The Living Trust also allows the Grantor to designate who will be the beneficiaries of the Trust and to specify how the beneficiaries will receive their distributions. Many people like the Living Trust as a means of making distributions into the future, in increments or over a period of time rather than all at once. This becomes very important when beneficiaries are minors or are not mature enou
