What is a living trust?

A living trust is an estate planning tool used in South Carolina to manage assets during a person’s life and upon death. A living trust is established when a person, known as the Settlor, transfers assets to a trustee to be held for the benefit of another person, known as the beneficiary. The Settlor can be both the trustee and beneficiary of the trust. Unlike a will, a living trust does not go through probate court and therefore allows the trust assets to pass directly to the beneficiaries. This is advantageous since it can save time and money associated with the probate process. The Trustee manages the trust property while the Settlor is still alive and distributes assets according to the instructions in the trust document. When the Settlor dies, the trustee follows the instructions in the trust document to manage and distribute assets to the beneficiaries. A living trust is an important tool that can be used to provide protection for the beneficiaries, including minimizing estate taxes, controlling spending and protecting assets from creditors. In addition, a living trust can be used to ensure that assets are managed according to the Settlor’s wishes upon death.

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What is a living trust?

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