Living Trust

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Related to Living Trust: living will, Irrevocable trust

Living Trust

A property right, held by one party for the benefit of another, that becomes effective during the lifetime of the creator and is, therefore, in existence upon his or her death.

A living trust, also known as an inter vivos trust, is different from a testamentary trust, which is created by will and does not take effect until the death of the settlor.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

living trust

n. sometimes called an "inter vivos" (Latin for "within one's life") trust, a trust created by a declaration of trust executed by the trustor or trustors (also called settlor or settlors) during his/her/their lifetime, as distinguished from a "testamentary trust" which is created by a will and only comes into force upon the death of the person who wrote the will. A living trust should not be confused with a "living will" which provides for medical care decisions when a person is terminally ill. While a living trust is a generic name for any trust which comes into existence during the lifetime of the person or persons creating the trust, most commonly it is a trust in which the trustor(s) or settlor(s) receive benefit(s) from the profits of the trust during their lifetimes, followed by a distribution upon the death of the last trustor (settlor) to die, or the trust continues on for the benefit of others (such as the next generation) with profits distributed to them. There are other types of living trusts including irrevocable trust, insurance trust, charitable remainder trust and some specialized trusts to manage some parts of the assets of a person or persons. (See: inter vivos, living will, trust, trustor, settlor, trustee, beneficiary, charitable remainder trust)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
A living trust or power of attorney usually gives the agent the power to access the principal's bank account.
In fact, data highlighted in the Filene Research Institute report Credit Union Implications of Living Trusts indicates that savers with a DC plan are twice as likely to set up a trust.
Property left to the survivor must usually go first from the trust to the survivor, and then to the survivor's living trust. In a shared trust, that same property would just stay in the living trust when the first spouse dies.
Creating a living trust can spare your heirs some time and money in the future.
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(5) See the Revocable Living Trust chart on page 35.
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Fact or fiction?--a living trust can help in the event of incapacity.
How to avoid probate by creating a living trust; a simple yet complete guide, rev.
Owned by the Allen E Paulson Living Trust, Azeri won 17 races, including 11 Grade 1s, headed by a victory in the 2002 Breeders' Cup Distaff.