What is a living trust?
A trust is merely an agreement, like a contract, between two parties. The person establishing the trust (the “Settlor”) and the person holding the property (the “Trustee”) hold property for the benefit of another (the “Beneficiary”). In a typical living trust, these three legal “persons” are the same person; you. The term “living trust” means that the trust is established and funded during your lifetime, as opposed to a testamentary trust which is created in your will and must go through probate to be funded. In order for a trust to be a valid, binding instrument; all that is necessary is for the parties executing it to have the legal capacity to enter into a contract, including age and competency, and for the trust to actually own something (the “corpus”). To fund the trust, you can assign, deed and transfer your assets into the existing trust, including your real property. Once the trust is signed, dated and acknowledged by a Notary Public, it is in full force and effect. Neither you
A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust. A “living trust” (also called an “inter vivos” trust) is simply a trust you create while you’re alive, rather than one that is created at your death. Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management.
A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust. A “living trust” (also called an “inter vivos” trust) is simply a trust you create while you’re alive, rather than one that is created at your death under the terms of your will. Different kinds of living trusts can help you avoid probate, reduce estate taxes or set up long-term property management.
A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust. A “living trust” is simply a trust you create while you’re alive, rather than one that is created at your death under the terms of your will. Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management.
A trust is merely an agreement (i.e., a “contract”) between two parties, the person establishing the trust (the “settlor”) and the person holding the property (the “trustee”), to hold property for the benefit of another (the “beneficiary”). In a typical living trust situation, these three legal “persons” are, in actuality, the same person (i.e., you). The term “living trust” merely means that the trust is established and funded during your lifetime rather than being a trust which is described in your will (a “testamentary” trust) and which must go through probate to be created and funded. In order for a trust to be a valid, binding instrument all that is necessary is for the parties executing it to have the legal capacity to enter into a contract (i.e., age and competency) and for the trust to actually own something (the “corpus”). In our trusts, we initially “fund” the trust with $10 to make it effective (you don’t actually have to transfer the $10) and then you can assign, deed and t
