What is a living trust?

A living trust is a legal document that allows an individual or group to manage property and assets on behalf of another person or group. This type of trust is established during the lifetime of the grantor, or the person who creates the trust. Living trusts are commonly used in District of Columbia to help manage the estate of a deceased person, avoid probate, or both. When a living trust is created, the grantor is the trustor, also known as the settlor and the trust beneficiary is the person who benefits from the trust. The grantor has the authority to name a trustee to manage and use the trust assets for the trust beneficiary’s benefit. The grantor can also name a beneficiary to receive the assets upon their death. This trust is revocable, meaning the grantor can make changes to the trust while they are alive. Living trusts can help reduce estate taxes, provide protection for the grantor’s family, and allow assets to pass to heirs without going through the probate process in District of Columbia. This type of trust can also help protect assets from creditors or others seeking to claim a portion of the grantor’s estate. Living trusts also help to ensure everything is handled as the grantor wishes. Lastly, living trusts can help to avoid the extra costs associated with probate.

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What is a living trust?

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