What is a living trust and how does it work?

A living trust is an agreement used in estate planning to manage a person’s assets before and after death. A living trust is created while the person is still alive and typically involves a grantor (the person creating the trust), a trustee (the party responsible for managing the trust) and a beneficiary (the one that will benefit from the trust). When creating a living trust, the grantor transfers legal ownership of the assets to the trust to be managed and distributed by the trustee. The assets are held in trust “in trust” for the benefit of the beneficiary. The terms of the trust must be specified in the document and can be tailored to the individual’s needs. Once the trust is created, the grantor may transfer or “fund” assets into the trust. This can include cash, real estate, investments, or any other type of property. The trustee then manages and distributes the assets as determined by the grantor or as specified in the trust document. Living trusts are a key part of estate planning in New York and can provide a number of benefits. Some of these benefits include avoiding probate, preserving assets, and forming a plan for the distribution of assets after the grantor’s death. Most importantly, these trusts can help to ensure that the grantor’s wishes are carried out as intended.

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What is a living trust and how does it work?

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