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.

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)

References in periodicals archive ?
A revocable living trust, however, provides no federal income tax or estate tax advantage that cannot also be achieved with a will that provides for the establishment of trusts following an individual's death.
The revocable living trust is usually the foundation for most other trusts, Brodie said.
Under the facts of the above example, the recipients of the IRA, revocable living trust, life insurance beneficiary, and the brokerage accounts will all be subject to several liability for any unpaid estate taxes.
Clara E Taylor Revocable Living Trust, to Birdwell James & Adele; 412 Sherwood Loop, Florence; $279,000.
Solution: Rather than add your child to your home to avoid a probate, put the home into a revocable living trust.
If the SNT is created by the parent as a separate document apart from his or her will or revocable living trust (this type of SNT is sometimes referred to as a "Stand-Alone SNT"), the taxation of the SNT varies on how the attorney who creates the SNT structures its terms.
A revocable living trust allows you to name your heirs in the same way that a will does.
It is not necessary to use the laws of the client's domicile when creating a revocable living trust.
THE ADVICE: Draft and execute a will, revocable living trust, and durable power of attorney for healthcare.
A revocable living trust (RLT) is one created by the grantor during lifetime, in which during his lifetime, the grantor retains the right to totally revoke the trust, change its terms, and/or regain possession of the property in the trust.
In 1991 Ruth Kimbell transferred the bulk of her estate to a revocable living trust.