Living Trust

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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 ?
Rosaline L Hyde Revocable Living Trust, to Noble Robert D & Rebecca S; 1745 T St, Springfield; $195,000.
Use of a revocable living trust as the receptacle for life insurance continues the exemption of proceeds from some states' death tax.
Question--What provisions should a revocable living trust contain if it is designed to provide property management during the grantor's incompetency?
There are some drawbacks to using a living trust and, depending on the type of assets you have, the costs may outweigh the benefits, so you should consult an estate planning attorney before making a decision about whether a revocable living trust makes sense for you.
Joint tenancy is sometimes a viable way to avoid probate, but its uses are limited and it has too many tax and legal problems to make it as flexible and as attractive as revocable living trusts. 12.
Revocable living trusts (RLT) are created to act as a will substitute, help minimize probate expenses, secure privacy, and aid in situations otherwise requiring a proxy.
Placing assets in a revocable living trust allows someone to appoint a successor trustee to manage the assets for his or her benefit.
Charles V Grimes Fam Trust & Grimes, to Anderson Family Revocable Living Trust; n/a; $337,187.
A Revocable Living Trust (RLT) is by far the most popular estate planning trust our clients use.
Assets transferred during lifetime by the decedent into the typical revocable living trust will likewise be subject to the modified carryover basis regime because such a trust will qualify as a qualified revocable trust.