What is a living trust?
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.
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 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. Different kinds of living trusts can help you avoid probate, reduce estate taxes or set up long-term property management.
A trust, like a corporation, is an entity that exists only on paper but is legally capable of owning property. A person, called a trustee, must be in charge of the property. 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 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. All living trusts are designed to avoid probate. Some may help you reduce estate taxes (if you have assets and properties held outside of Canada), and others let you set up long-term property management.
A Living Trust is a legal document that looks a lot like a Will. In fact, it does what most people think a Will does and much more. Because there is no probate with a Living Trust, most of the expensive court proceedings and delays are eliminated, your privacy is preserved, and emotional stress on your family is minimized. A Living Trust is extremely hard to contest, may provide investment and estate management during your lifetime, and it even provides very effective prenuptial protection. A Living Trust does not reduce state or federal estate taxes.
