Living trust definition: A living trust is a legal document that states who you want to manage and distribute your property if you're unable to do so, and who receives it when you pass away. Once signed, you transfer ownership of your assets into the trust and you remain in complete control of your property. The living trust property can be managed and distributed without going through the probate court.
Advantages of a living trust
It's a smart way to avoid probate. Keep more money in the family by avoiding potentially lengthy and expensive court proceedings.
Your personal and financial matters remain private. The public doesn't get to see what you owned, who you owed, and who'll inherit your assets.
Your affairs get handled if you're incapacitated. Avoid going to court by appointing a trustee to take charge of your finances according to your instructions.
A living trust doesn't change your financial affairs
A living trust lets you do whatever you want with your money - buy and sell assets, open bank accounts and make investments just like you do now. You can amend or change the trust any time, or even revoke it and pull your assets out. It remains on the shelf, ready to act if something happens to you or your spouse.
Why living trusts are so popular
You want to make sure your property goes to the right people, at the right time and at the least cost. A living trust can do all this. Living trusts helps you manage and distribute your property efficiently without court interference.