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 ?
The Estate Plan's independent studies have shown there is more misinformation online regarding living trusts than correct information available for three primary reasons.
According to the claim the costs to manage the couple's Living Trust were too high for the account to be profitable.
As part of the Settlement, American Equity agreed that it would no longer sell deferred annuities where the Company has knowledge that sales leads were generated through the sale and/or marketing of living trusts.
You can preserve your wealth for your heirs and protect it from taxation, creditors and unnecessary legal contests by opting for intervivos, or living trusts.
For probate purposes, property transferred to a living trust - revocable or irrevocable - is not considered owned by the grantor at death.
The most popular trust is the revocable living trust, which Haught said is commonly used in place of a traditional will.
The size of your taxable estate is based on the current market value of the property held in your name, your share of property you own jointly with someone else, the death benefit of your life insurance policy and assets you have in a revocable living trust.
With a living trust, a trustee can be appointed to manage the grantor's financial affairs in the event he is incapacitated; without such a trust and trustee, someone has to ask the court to declare the individual incompetent.
Cargile Living Trust and the Bonnie Lon Hale Cargile Living Trust, 4 acres at 14916 Cantrell Road for $1.
April 11 /PRNewswire/ -- Provident Senior Living Trust ("Provident" or the "Company") announced today that on April 11, 2005, its Board of Trustees declared a quarterly dividend, with respect to the first quarter of 2005, of $0.
I had my living trust and my photo albums, and that's all I care about,'' said Joyce Layman, 54, who prepared to leave after watching the fire come within feet of her home.