What is a living trust?

A living trust is a legal document that allows you to transfer ownership of your assets to another person or entity during your lifetime. It is also known as an inter vivos trust. The trust becomes effective after you have signed it and the assets have been transferred into the trust. In Delaware, the person or entity responsible for managing the trust is called the trustor. The trustor is in charge of investing and distributing assets according to the instructions set forth in the trust. A living trust can be used for a variety of purposes, including providing for long-term care for yourself or a family member, managing assets for young beneficiaries, protecting assets from creditors, avoiding the costly and time-consuming probate process, or providing for special needs beneficiaries. It can also be used to direct how and when assets are distributed upon your death. A living trust is more flexible than a will because it allows you to be more specific about how and when assets are distributed. It also allows you to change the terms during your lifetime, unlike a will which is not changed once it is signed. In Delaware, a living trust must be created and signed according to state law. It should be drafted by an attorney who specializes in estate planning and elder law. The attorney can advise you on the best type of trust for your circumstances and help to ensure that the trust is drafted properly.

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