What is a living trust and how does it work?

A living trust is a legal agreement that allows a person to set aside assets and ownership interests during their lifetime to be distributed after their death. The trust is managed by a trustee who will look after the assets and carry out the wishes of the deceased. The trust is usually set up and managed while the person is still alive, which is why it is called a “living trust.” The trust document is the main document that outlines the details and intentions of the trust. This includes who will be the beneficiary of the trust, the trustee, and other important information like investment strategies and any other instructions for the trustee. Once the trust document has been created and signed, the trust is funded with assets. This means that the assets are transferred from your individual ownership to the trust. Assets can include bank accounts, stocks and bonds, real estate, business interests, life insurance policies, or other investments. After the trust is funded, the trustee will manage and invest the trust assets according to the terms of the trust. This includes making distributions to beneficiaries as outlined in the trust document. Upon death, the trust assets are paid out according to the instructions in the trust document, rather than the provisions of a will or pursuant to South Carolina’s intestacy laws. In summary, a living trust is a legal agreement that allows a person to set aside assets and ownership interests during their lifetime to be distributed after their death. The trust is managed by a trustee and funded with assets that are transferred from the individual’s ownership. The trustee will look after the trust assets and distribute them to the beneficiaries according to the terms outlined in the trust document.

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What is a living trust and how does it work?

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