What is a living trust?

A living trust is a type of legal instrument created when an individual, known as the settlor, transfers ownership of their assets to another entity, known as the trustee, for the benefit of another party, known as the beneficiary. In Wisconsin, a living trust is often used to manage and distribute assets upon the settlor’s death, rather than through probate. A living trust can contain funds, investments, or property that are managed and distributed according to the trust’s language. To create a living trust, the settlor executes a trust document that outlines the provisions of the trust. In that document, the settlor names the trustee and/or successor trustees and decides who the beneficiaries will be. The trustee is responsible for managing the trust and using the trust’s assets for the benefit of the beneficiary. This includes making sure that the beneficiary’s finances are managed and investments are appropriate. The trustee is also responsible for filing taxes and distributing trust assets upon the death of the settlor. Living trusts provide a variety of benefits over traditional wills. They avoid the probate process, are private and not subject to public examination, reduce costs, and provide more flexibility with regard to managing and distributing the settlor’s assets. Living trusts can also help protect assets from creditors and provide for a continuity of operations after death.

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What is a living trust?

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