A living trust, also known as a revocable trust or inter vivos trust, is a legal document that is created during a person’s lifetime and is used to hold and manage their assets. The person who creates the trust, known as the grantor, transfers ownership of their assets to the trust, which is then managed by a trustee.
The grantor can serve as the initial trustee and can name a successor trustee to take over the management of the trust in the event of their incapacity or death. The trust document outlines how the assets are to be managed and distributed during the grantor’s lifetime and after their death.
Living trusts are often used as part of an estate plan to help avoid probate, minimize estate taxes, and provide for the orderly management and distribution of assets after the grantor’s death. They can also provide privacy for the grantor and their beneficiaries, as the terms of the trust do not become public records.
Here are some tips related to living trusts:
- Consult an attorney: Creating a living trust can be complex, so it’s important to consult with an experienced estate planning attorney who can help you draft a trust that meets your specific needs and goals.
- Fund the trust: Once the trust is created, it’s important to transfer ownership of your assets into the trust. This is known as “funding” the trust and can help ensure that your assets are properly managed and distributed according to the terms of the trust.
- Update the trust as needed: As your circumstances and goals change, it’s important to review and update your living trust periodically to ensure that it still meets your needs.
I hope that this article has given you a better understanding, If you got questions and need additional info or an experienced attorney let me know.