What is a Living Trust?
August 8, 2013
A trust is a legal relationship where assets are transferred to a trustee for the purpose of using those assets for the benefit of one or more beneficiaries. The creator of a trust is known as the settlor, grantor, or trustor.
A Living Trust, also known as an inter-vivos trust, is a trust that is created during the lifetime of the trustor and for the benefit of the trustor during his or her lifetime. After the death of the trustor, the trust assets are distributed and managed by the trustee for the benefit of the beneficiaries named in the trust.
One advantage of a Living Trust is that it avoids probate, which can be expensive and time-consuming. It also allows people to do a variety of tax, asset, and estate planning. A Living Trust also keeps your estate private and allows people to manage and/or distribution assets quickly and efficiently.
Living Trusts have generally become more popular than wills and are the staple instruments in estate planning. However, in order for Living Trusts to be effective and efficient, they must be carefully drafted with expertise. The Morris Estate Planning Attorneys will do that for you.