What is a living trust?
A living trust is an inter vivos trust that begins to operate during the trust creator’s lifetime. It is generally revocable and amendable during the trust creator’s lifetime. At the trust creator’s death, the trust may then terminate and be distributed to designated persons or may continue for other beneficiaries. There are advantages and disadvantages to a living trust. It is appropriate in some cases, but not in all cases.
A “Living Trust”, or “Revocable Trust” is a trust which you establish during your lifetime (unlike a Testamentary Trust, which is provided for in your Will). Unlike an Irrevocable Trust, however, you retain complete control over a Living Trust during your lifetime, with the power to utilize assets or change the document however you wish. A Living Trust represents the primary estate planning document for many individuals. A Trust Agreement is signed to create this arrangement, which can be used to manage one’s assets for your benefit, then for the benefit of your spouse and children.
A Living Trust or Revocable Trust is a legal document that can be used in place of a Will. Once created assets are transferred into the Trust (home, bank account, stocks and bonds, for example), which are then administered for your benefit during your lifetime, and then transferred to your beneficiaries on your death. Many people initially name themselves as the trustee in charge of managing their trust’s assets. That way, even though your assets are put in a trust, you remain in control of your assets during your lifetime. A living trust is revocable; that way it can be amended or revoked by the person who created it. You can also name a co-trustee to act with you or a successor trustee, someone who will manage the trust should you no longer wish or become unable to do so. Points to Consider when deciding between a Will and a Living Trust: • A Will is subject to probate (Court Supervision) proceedings – a Living Trust is not. • Since a Will is subject to probate, court supervision is
A “living trust” is a legal entity which you can create to which your assets, such as bank accounts, investments, your home or other assets, can be transferred. A trust is managed by a person known as a trustee. The trustee can be you, a family member or a bank or trust company. The trustee manages your assets in accordance with the written instructions contained in the trust document. Living trusts can be revocable (easily cancelled) or irrevocable (non-cancelable). A living trust has beneficiaries – the people who receive the benefit of the income or the trust and who may eventually own the assets of the trust. Living trusts are heavily sold by some attorneys as substitutes for Wills. However, a living trust may or may not be right for you. A living trust is not something you buy from a salesperson at your door or from a brochure you receive in the mail. The best way to determine whether or not you need a living trust is to consult with an Elder Law attorney who will review your need
