Question : Can someone explain to me what a living trust is?
My wife gave her mother life estate on a house she owns, is this an example of a living trust?
- asked by
All Answers:
Answer #1
a living trust means that a group of people allhave to agree on decisions over properties.
- answered by Doug
Answer #2
sometimes called an inter vivos (Latin for "withinone's life") trust, a trust created by adeclaration of trust executed by the trustor ortrustors (also called settlor or settlors) duringhis/her/their lifetime, as distinguished from a"testamentary trust," which is created by a willand only comes into force upon the death of theperson who wrote the will. A living trust shouldnot be confused with a "living will," whichprovides for medical care decisions when a personis terminally ill. While a living trust is ageneric name for any trust which comes intoexistence during the lifetime of the person orpersons creating the trust, most commonly it is atrust in which the trustor(s) or settlor(s)receive benefit(s) from the profits of the trustduring their lifetimes, followed by a distributionupon the death of the last trustor (settlor) todie, or the trust continues on for the benefit ofothers (such as the next generation) with profitsdistributed to them. There are other types ofliving trusts including irrevocable trust,insurance trust, charitable remainder trust andsome special- ized trusts to manage some parts ofthe assets of a person or persons.
- answered by nwtobe
Answer #3
A Living Trust is called that simply because it iscreated while you're alive (as opposed to a"testamentary" trust created after death).
- answered by Chantal
Answer #4
yes. that's so if in the event of a untimely deaththe state can't take the property. and you don'thave to go threw probate to get your property backfrom the state
- answered by beerbruther1
Answer #5
No, that is not a living trust. That's a lifeestate.A living trust has a grantor and trusteesand beneficiaries and what you described hasnothing to do with trusts.
- answered by Loss Leader
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