Living Trust

What is a living trust?

A living trust is a revocable trust created while a grantor is still alive in which the grantor transfers the ownership of some or all his property and assets into the trust. It allows an individual to control the distribution of her estate, thereby minimizing potential disputes and issues for family members after one’s death.

A living trust allows an individual to determine exactly how his assets will be distributed upon his death. A well-drafted living trust can avoid a lengthy probate process, as only property in the deceased’s name is subject to probate. There are a variety of tools and strategies that may or may not be suitable for a living trust, depending on individual circumstances and considerations.

A grantor may serve as the trustee to her living trust or she may choose a person or institution to assume this responsibility. An individual who serves as his own trustee is required to name a successor trustee upon his death. The successor trustee will be responsible for distributing assets after the grantor’s death.