Living Trust FAQ

Questions:

• What is a living trust?
• Why should I make a living trust?
• How does a living trust avoid probate?
• Is it expensive to create a living trust?
• Is it a hassle to hold property in a living trust?
• Is a living trust document ever made public, like a will?
• Does a living trust protect property from creditors?
• If I make a living trust, do I still need a will?
• Can a living trust reduce estate taxes?

Answer:

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. To learn more about serving as a trustee, see Nolo's The Trustee's Legal Companion.

A "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.

Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management. For details on creating a living trust, see Nolo's article Making a Living Trust: Can You Do It Yourself?