Living Trust

A Living Trust is a legal document created during a person's lifetime where a designated person (the trustee) is given responsibility for managing that person's assets for the benefit of the eventual beneficiary. Unlike a will, a living trust can help avoid probate, maintain privacy, and provide for management of assets if the creator becomes incapacitated. There are revocable living trusts (which can be modified) and irrevocable living trusts (which generally cannot be changed). The trust document specifies how assets should be managed during the creator's lifetime and how they should be distributed after death. Living trusts are particularly useful for people with significant assets, complex family situations, or property in multiple states.