What is a living trust?
A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. You can be the trustee of your own living trust, keeping full control over all property held in trust. “living trust” (also called an “inter vivos” trust) is simply a trust you create while you’re alive, rather than one that is created at your death. Living trusts usually have various instruments, such as powers of attorney, that also help loved ones care for someone in time of need.
Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management.