A living trust or an inter vivos trust is an estate litigation tool that enables the creator of the trust to transfer assets to beneficiaries without going through probate. It is a written agreement designating someone to be responsible for managing the properties held in the trust. It is called a living trust because it is established while the settlor (creator of the trust) is still alive.
A revocable living trust may be amended or revoked at any time by the person or persons who created it as long as he, she, or they are still mentally competent. Typically, a living trust becomes irrevocable (cannot be changed) when the settlor dies.
In a revocable living trust, the settlor or Trustor can keep the right to manage the properties in the trust, whether they're the trustee or not. Upon the death of the settlor, the alternative trustee distributes the property according to the terms of the trust. The alternative trustee is usually the surviving spouse, an adult child, a bank or trust company.
Stay tuned for more on this topic on our subsequent blog.
*This blog entry was not written by an Attorney and should not be construed as professional legal advice.