Living Trust

A living trust is a legal arrangement that individuals create during their lifetime to hold and manage assets. Unlike a will, which goes into effect after a person’s death, a living trust is effective immediately after it is established and funded with assets. A living trust is also known as a revocable living trust or an inter vivos trust.

Because a living trust is revocable, the grantor retains the ability to amend, modify, or revoke the trust. This is in contrast with an irrevocable trust, which generally cannot be changed or revoked once it’s established. 

One of the key benefits of establishing a living trust is that it can help avoid probate once the grantor has passed away if it has been properly funded. The assets held in a living trust are not considered part of the grantor’s probate estate and can therefore pass directly to the designated beneficiaries upon the grantor’s death. 

Another benefit is that, unlike a will, which becomes public record during probate, a living trust typically remains private. This provides greater confidentiality for the grantor and beneficiaries regarding the terms of the trust and asset distribution.