What is a living trust?
Also known as an inter vivos trust, a revocable living trust is a legal entity.
Even though it doesn’t exist outside of a piece of paper, the law allows it to
How do I make a revocable living trust?
You sit down with your estate planning attorney and draft a document called
a trust instrument. The trust instrument has to contain specific details as
required by law.
Trust Operation and Management
What does my trust do?
Your living trust can own any of the property you transfer to it. When you
create the trust, you will have to decide who can use that property, who must
manage it, and who inherits after you die.
Who will manage the trust?
You have to appoint a trustee to manage your revocable living trust. This
trustee can be almost anybody, but it’s usually you.
Who gets to use the living trust property?
You do. In addition to creating the revocable living trust, and serving as the
trustee, you will also retain the benefits of being able to use and control your
Will my living trust help me avoid taxes or other risks?
No. Revocable living trusts do not give you any tax benefits, nor do they
protect your property from lawsuits or other potential risks. If asset
protection is important you, you need tools other than a living trust.
Other Asset Protection Tools
What other tools are available for asset protection?
That depends on your circumstances, but these tools often include different
types of trusts, known as irrevocable trusts, as well as different types of
business structures, such as limited liability companies.