ABA Family Legal Guide

The Rights of Older Americans

A Right to Control Your Own Affairs

Living Trusts

What is a "living trust"?

A living trust (also called an inter vivos trust) is an arrangement under which you transfer ownership of all or part of your property to the trust during your lifetime. As the person establishing the trust, you are called the grantor or settlor. You name a trustee, who manages the property according to the terms of your written trust document. The trustee may be an individual or an institution or yourself. The trust is for the benefit of one or more persons, including you, called the beneficiaries.

Frequently, a will is used to set up a trust (called a testamentary trust) that becomes effective after the death of the person establishing the trust. A living trust, however, is effective during the lifetime of the settlor, although it may be written to continue beyond the lifetime of the settlor. In a living trust, the settlor and/or members of his or her family are usually the beneficiaries of the trust. A living trust may be revocable or irrevocable.