A Living Trust is a trust created by a person (the "grantor") for use during that person's lifetime. It provides for payments of income for that person and the distribution of the remaining assets of the trust upon that person's death. Although they sound complicated, Living Trusts are rather simple.
Essentially, assets are put into a "trust" and a person is designated to manage those assets for the person who benefits from that trust. The person who manages the trust could be the person who made the trust (the grantor), someone else (a "trustee") or even a paid professional. Living Trusts can also be amended or revoked at any time by the grantor.
An advantage of a Living Trust, also known as Revocable Living Trust, is that it does not have to go through the standard probate process, so funds can be distributed to cover your death expenses or to care for minors or disabled family members. It also may be able to make funds and assets available more quickly than a will. Get started on yours now with Rocket Lawyer!
Note: This trust template is not appropriate for individuals whose estate exceeds the federal estate tax exclusion limit. But this form is suitable for most with an average net worth.