Living Trust Articles >> What is a Living Trust?

What is a Living Trust?

It’s quite possible you’ve heard the term, but many people still wonder, “What is a living trust?” The answer is quite simple and is very likely to save you substantial sums of money over your lifetime.

A living trust is a legal instrument which allows you to hold the title to assets, such as property, for another person – including yourself. A living trust is set up while you are still alive, hence the name, and most often you establish a living trust to protect your assets. You can be the trustee or person in charge of your own trust allowing you to both legally take advantage of financial benefits while remaining in complete control of your own property.

Definition of a Living Trust

To explain a living trust in formal terms: a living trust is created to transfer or gift property from its living creator, the trustor, to one or more beneficiaries. It is often changeable ore revocable. A living trust is almost always created as an estate planning device as it allows you to manage and distribute assets during your life and following your death without the hassles and expense of probate and some estate taxes.

Basics of a Living Trust

Living trust info is easy to find, but that doesn’t always make it easy to understand. A living trust is a legal instrument that is often convoluted by legal terms and conditions. Setting up a living trust doesn’t necessarily require the assistance of a lawyer. In fact, it doesn’t need to be complicated at all.

A living trust is a document similar to a will, with the exception that a living trust doesn’t go through probate when you pass on. A living trust is also essentially impossible to contest making it additionally attractive. By placing your assets in a living trust you are in complete control of them during your lifetime and beyond.

If you are married, you and your spouse can create a living trust with certain clauses to protect your joint interests. Both parties can be trustees allowing you both to manage the property contained in the trust. Should one of you become incapacitated, you can include a clause allowing the other to make independent decisions on your behalf. When one party passes, the remaining party remains in complete control of all assets although you may decide that some amount should be paid out to beneficiaries to limit estate taxes.

When both parties are gone, the trust and all property included simply passes to the designated successor trustee who will be sure your wishes for any distributions are followed without any assistance or delays by the legal system. There is no need for probate and no disruption to any ongoing arrangements following your passing. The trust and all your property is handled in a manner you choose by the person you select.

Living Trust Information

There is a great deal of living trust information contained in additional articles on CreateMyLivingTrust.com. Be sure to read and gain more information about living trusts and their advantages, or simple find out how a living trust can work for you and those you love by downloading our complete package to create your own living trust.