What is a living trust and how does it work?

A living trust is a legal document that allows a person to manage their assets while they are still living. It enables the person to decide who will receive their assets if they pass away, as well as how they will receive them. This type of trust is created while the individual is alive, and is typically used in estate planning. In Nebraska, a living trust is created when an individual (known as the grantor) signs a trust agreement. This trust agreement states their wishes and assigns a trustee, who will manage and distribute the assets named in the trust, according to the wishes of the grantor. The grantor retains the right to change or revoke the trust agreement while they are still alive. Once the grantor dies, the trustee manages the trust assets and distributes them according to the terms stated in the trust agreement. The trustee must also ensure the grantor’s wishes are carried out exactly as they were stated in the trust agreement. Living trusts are an important element of estate planning in Nebraska, as they help ensure that the grantor’s assets are distributed in the way they intended. Without a living trust, assets may be distributed in a way that the grantor did not intend, and their wishes may not be fulfilled.

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What is a living trust and how does it work?

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