Trusts are formed to hold and manage property for beneficiaries. Although a Will speaks only from the moment of death, trusts begin speaking when they are created. A living trust is created while you are alive to manage your property during your life, appoint someone to take over if you lose mental capacity, and to provide who receives the trust property when you die.
A trust is a legal agreement which appoints a trustee to hold, manage and distribute property for the benefit of another person (or people or pets) who are known as beneficiaries. Trusts can be used for a variety of purposes in estate planning. Living trusts are used to manage assets and avoid probate. A "living trust" is not offered for probate and its contents are not a matter of public record. If there is concern about making a Will public, a "living trust" is a good alternative. It is often called a "will substitute."
One of the most common types of trusts used in estate planning is known as a "living trust." Whether it makes sense in your situation depends on the nature of your assets, the desire to avoid probate, and the ease of transferring what you own into the trust. A living trust can be a valuable tool to: