living trust

Definition
A trust created for the trustor and administered by another party while the trustor is still alive. A living trust can be either revocable or irrevocable. A living trust avoids probate and therefore gets assets distributed significantly more quickly than a will does. It also offers a higher level of confidentiality, as probate proceedings are a matter of public record. Additionally, trusts are usually harder to contest than wills. On the downside, a living trust takes longer to put together than a will, and requires more ongoing maintenance. Although both a will and a living trust can be modified or revoked at any time before death, such changes are slightly more time-consuming for a living trust. Additionally, assets that a person wants to move to a living trust, such as real estate and bank or brokerage accounts, have to be retitled.




living trust is ...
... part of the
Law & Estate Planning subject.


Related Terms

inter vivos trust -  More
sprinkling trust -  More


living trust appears in the definitions of these other terms on BusinessDictionary.com

Loading...









Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z