What is a living trust?

A living trust is a legal document created by an individual, referred to as a grantor, during their lifetime to manage the grantor’s assets during their lifetime and to provide for the disposition of those assets after the grantor’s death. In Michigan, creating a trust is a great way to protect assets and keep them from probate after death. A grantor creates the trust, which is governed by the terms set forth in the trust document. The trust document includes instructions on how the trust will be managed, how assets will be distributed, and how disputes between beneficiaries or trustees will be resolved. The document also names the trustee, the person or organization who will manage the trust and its assets according to the instructions of the grantor. The trust document may also name a successor trustee and specify how the assets should be distributed upon the grantor’s death. Assets placed in the trust are managed and distributed according to the grantor’s wishes, without going through the lengthy and often costly probate process. Living trusts are flexible and can be modified or revoked by the grantor at any time. Additionally, the trust remains private and does not require the filing of the trust document with the court, though the grantor may choose to do so. In Michigan, creating a living trust can provide the grantor with peace of mind that their wishes will be carried out after their death, in a timely and efficient manner.

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