What is a living trust?
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 by lawyers who cant give up Latin) is simply a trust you create while youre 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 where assets are given to a trustee to hold and manage for your benefit or the benefit of your beneficiaries. The purpose of a trust can be · to manage assets in order to produce income for a beneficiary, conserve assets or provide for growth of the assets; · to reduce estate taxes; · to control use or disposition of assets long after you are deceased; · to provide for spouse and issue; · to provide for children during minority or if disabled; and · to protect beneficiaries (other than yourself) from creditors. A living trust is just a type of trust, created while you are living. It can be funded while you are living or after your death. If funded before you die, the assets in the trust will not pass through probate and to that extent will avoid the probate process. You can be a beneficiary of this type of trust. Click here for more info on “living trusts.
A. A trust, like a corporation, is an entity that exists only on paper but is legally capable of owning property. A flesh-and-blood person, however, must actually be in charge of the property; that person is called the trustee. You can be the trustee of your own living trust, keeping full control over all property legally owned by the trust. There are many kinds of trusts. A “living trust” (also called an “inter vivo” trust by lawyers who can’t give up Latin) 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. All living trusts are designed to avoid probate. Some also help you save on death taxes, and others let you set up long-term property management.
