What is a Living Trust
A person can form living trust for its property to get rid of probates, tax etc. up to some extent. When a person gets authorized legally for the management of any other person’s property, it is called as trust. If a person whose property is being entitled under someone else for management is alive, it is called living trust. In this case the person who holds the legal authority to look after the property is called as the ‘trustee’ while the person who is the owner of the property is known as beneficiary. This system is useful to carry out proper management of the property for a long time period.
Any person can establish a trust during its life also to accomplish long term managing of the property. Living trust is also called as ‘inter vivos’. It is a term of Latin language which means, during a person’s life. Living trust is different from the testamentary trust which is based on the death matter of the trustor. It does mean that the trust which comes into existence after the death of the trustor. This kind of trust is set up according to the will of the person who owned the property.
The most important fact to know about the trust is that the beneficiary means the person who established the trust receives a significant part of the benefit being earned by the application of its property. The trustor is subjected to receive the particular profit percent during his/her survival. After the death of the trustor of a property, that profit percent can be received by the authorized persons such as the subsequent generations of the beneficiary. Secondly, the trust will always be controlled by the owner only till its death.
Establishment of living trust is a work of intelligence as it creates a short cut for the person to whom a person has authorized as an upcoming owner of the property after the death. It saves the trustee from unnecessary sparing of money. The time taking and money utilizing process of probate can be converted into the easy application. Probate is nothing but a process of establishing validity for a will judicially during the life. An official certification letter assists the establishment of the will to verify its originality. A living trust can be designed by a person itself without any hesitation. This needs nothing but to fill a form of trust establishment. The form should be filled with appropriate information by the owner of the property.
Setting up the living trust requires a valid and judiciary recognized will. It is helpful for a person who will be the owner of the property after trustor’s death to avoid the shortcomings to set up the ownership. It is an exact way to get rid of time taking process of probate.