Living Trust

A Living Trust, also known as an inter vivos Trust, is a legal document created during a person’s lifetime that allows for the management and distribution of their Assets. The individual (the grantor) transfers ownership of their Assets into the Trust, which is then managed by a Trustee/">Trustee for the benefit of designated beneficiaries. Living Trusts can help avoid Probate, provide privacy, and facilitate Asset-management/">Asset Management in the event of the grantor’s incapacity.

For example, if John establishes a living Trust and transfers his home and investment accounts into it, he can specify that upon his death, the Assets will be distributed to his children without going through Probate. Additionally, if John becomes incapacitated, the Trustee/">Trustee can manage the Trust Assets without needing to go to court.

In a notable case, the estate of musician Prince faced complications after his death in 2016 due to the lack of a living Trust or will, leading to a lengthy Probate process. Had he established a living Trust, his Assets could have been distributed more efficiently and privately.