Living Trust

A living trust, or inter vivos trust, is a trust which takes effect within the trustor's lifetime. When a living trust is created, a trustor transfers the ownership of their assets to a trustee while the trustor is still alive – as opposed to after their death (see: testamentary trust). Any trust created while the trustor is alive falls under the category of living trust.

Living trusts can be revocable trusts or irrevocable trusts. Revocable trusts can be altered or withdrawn by the trustor during their lifetime. Upon the death of the trustor, revocable living trusts typically become irrevocable. Irrevocable trusts cannot be altered by trustors, trustees or trust beneficiaries without a legal process.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.

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