A Living Trust is created by a trust document and designates one or more individuals or corporations to act as trustee. The trust document directs the trustee to accept title to, or ownership of, real and personal property as trustee for the benefit of the trust’s beneficiaries. The trust documents sets out in detail how the trust is to be administered. It contains the directions of the person who sets up the trust to guide the trustee.
A Living Trust avoids the requirement of probate as your property is conveyed to the trust during your life time. Most of the time, you, as Grantor, would be the trustee and the trust would provide that you can utilize everything in the trust for your needs during your lifetime. Upon death, a Living Trust typically provides for a successor trustee and directs how the property in the trust will be used for the benefit of the remaining beneficiaries. A living trust can also be used to derive tax advantages in larger estate cases.