Living Trusts

These trusts are also known as "living trusts". They can be useful to avoid probate, obtain professional management during your life, manage your assets yourself and appoint another person to take over upon your death, maintain privacy, and have the trust continue after your death. Living Trusts do not save taxes. A living trust is a vehicle under which you transfer assets to a trustee (which can be you) to manage the assets on behalf of the beneficiary (which can also be you). Upon your death, the trustee will distribute the funds as specified in the trust instrument. There is no need for probate. A living trust can also be designed to include bypass trusts upon your death, similar to a will. The living trust can be amended and revoked during your life.

It is not enough to simply create a trust. It is also necessary to provide for the transfer of assets into the trust. In the case of bank accounts, the bank may have its own forms and procedures to be followed, and will probably want to obtain and keep and copy of the trust instrument. In the case of stocks and bonds, they must be re-registered in the name of the trust. In the case of real estate, a new deed will be necessary to convey the property into the trust.