A property interest created during a person's life that allows easy transfer of assets without going through the process of probate. A living trust is an agreement where the trustee holds the legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive. This is different compared to other types of trusts that are created through the person's will.
Also known as inter-vivos trust.
There are two types of trusts: inter-vivos (living) trusts and testamentary trusts. Testamentary trusts are trusts that are established through a last will and testament, whereas living trusts are created while the person is alive. The advantage of establishing a living trust is that assets do not have to go through probate, which can be costly and take a lot of time.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
living trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. living trust … Law dictionary
Living trust — A living trust (inter vivos trust) is a trust created during a person s lifetime. Living Trusts in the United StatesIn the United States, a living trust refers to a trust that may be revocable by the trust creator or settlor (known by the IRS as… … Wikipedia
living trust — A trust that an individual establishes during the individual s lifetime, enabling the person to control the assets contributed to the trust. Also known as an inter vivos trust. Bloomberg Financial Dictionary * * * living trust living trust ➔… … Financial and business terms
living trust — noun a trust created and operating during the grantor s lifetime • Syn: ↑inter vivos trust • Hypernyms: ↑trust * * * noun : a trust created by the transfer of property by its owner to a living or existing person to hold as trustee : a trust inter … Useful english dictionary
living trust — a trust that takes effect during the lifetime of the settlor. Also called trust inter vivos. Cf. testamentary trust. * * * … Universalium
living trust — noun Date: 1873 a trust that becomes effective during the lifetime of the settlor called also inter vivos trust … New Collegiate Dictionary
living trust — An active trust. Also, a trust inter vivos … Ballentine's law dictionary
revocable living trust — A trust set up during life that can be revoked at any time before death. Revocable living trusts are a common and excellent way to avoid the cost and hassle of probate, because the property held in the trust during life passes directly to the… … Law dictionary
trust — n 1 a: a fiduciary relationship in which one party holds legal title to another s property for the benefit of a party who holds equitable title to the property b: an entity resulting from the establishment of such a relationship see also… … Law dictionary
trust declaration — See: declaration of trust Category: Wills, Trusts & Estates → Estate Tax Category: Wills, Trusts & Estates → Living Wills & Medical Powers of Attorney Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009 … Law dictionary