What is a Living Trust?

A Living Trust, also known as an inter vivos trust, is a legal arrangement that takes effect while the grantor is still alive. This type of trust allows the grantor to manage their assets during their lifetime, providing them with flexibility and control. Additionally, assets placed in a Living Trust can be distributed to beneficiaries according to the grantor's wishes without the need for probate after the grantor's death. This can lead to faster distribution of assets and potential savings on probate costs.

The primary purpose of a Living Trust is to manage and protect one's assets during their lifetime, as well as to ensure a smooth transition of those assets to heirs upon death. This distinguishes it from other types of trusts, such as testamentary trusts, which only come into effect after the grantor has passed away. A Living Trust can also be more adaptable compared to trusts created solely for tax benefits, as it serves to manage assets throughout the grantor’s life, not just for tax purposes.