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.

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 ?
Critique: Enhanced with a profusion of charts, examples, and checklists, including a Personal and Financial Organizer that will help you prepare to meet with your attorney, "Understanding Living Trusts " has the added benefit of saving you considerable time and money by avoiding the necessity to have an attorney.
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.
Living trusts are powerful estate planning tools that can help many people.
99), and Make Your Own Living Trust by Denis Clifford (Nolo Press; $39.
Two basic differences have led me to choose a revocable living trust.
A revocable living trust permits you to transfer your ownership of your assets to the trust, while still maintaining control over those assets during your lifetime.
A living trust usually starts to function during the life of its creator and can form part of an overall estate plan.
Whether a living trust is right for you, how ever, depends on a number of factors.
One of the most common estate-planning tools today, the benefits of a living trust are that your estate can pass to your heirs without going through probate.
The will, filed in Los Angeles probate court, was made to supplement a living trust drawn up several years ago which will disperse the bulk of his fortune and which will not be made public.