What is a living trust?

A living trust is a legal document created while an individual is still alive. It is used to manage the trust maker’s property and assets. The trust maker is the person who creates the trust, and the trust beneficiary is an individual or organization that receives money or assets when the trust maker passes away. Living trusts are not subject to probate (the court-managed process of transferring assets after death) in Pennsylvania. This means that the process is more efficient as the trust maker’s assets will not be tied up with probate court during a potentially lengthy period. These trusts can be used to manage property and assets during the trust maker’s lifetime, and after their death, the assets are transferred to whatever beneficiary the trust maker designated. Living trusts can also provide confidentiality, as well as asset protection in case of the trust maker’s death. This is because the living trust is not part of the public record, like a will is. The trust maker can also stipulate that the trust beneficiary will receive the assets from the living trust in staggered amounts or over a period of time, if so desired. Living trusts can be an effective way to manage one’s assets during and after life, and can help to make the process of passing on one’s property and assets much more efficient than with a traditional will. It is important to note, however, that living trusts should be created in consultation with an estate planning attorney in order to ensure the trust is properly crafted and its provisions are legal and binding in Pennsylvania.

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What is a living trust?

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