Living Trust: A Legal Overview

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A living trust is a legal instrument created during one's lifetime to manage assets and specify their distribution after death. It involves a grantor (creator), trustee (manager), and beneficiaries.

Key Types of Trusts:

1. Revocable Trust

2. Irrevocable Trust

3. Medicaid Asset Protection Trust (MAPT)

4. Special Needs Trust

5. Pooled Income Trust

Revocable Trust:

• Most common for estate planning

• Grantor maintains control as trustee and beneficiary

• Bypasses probate, allowing immediate asset access post-death

• Amendable during grantor's lifetime

Irrevocable Trust:

• Offers probate avoidance and creditor protection

• Grantor relinquishes control to third-party trustee

• Used for estate tax minimization

• Modifications require consent from all parties

Trust vs. Will: Trusts avoid the costly and time-consuming probate process required for wills.

Professional Assistance: While not legally required, professional drafting ensures compliance with legal requirements, mitigating risks of invalidity or disputes.