What is a Trust?
A Trust is a fiduciary relationship in which one person (the Grantor) contributes property to another person (the Trustee) to own legal title to property for the benefit of another (Trust Beneficiary). Typically, a Trust is formalized in a lengthy written document prepared by an attorney. A trust may be testamentary (meaning that it comes into existence by virtue of a Will) or it may be a Living Trust. In order to have an effective trust, it must not only be reduced to writing, it must also have property transferred into it. This is a particularly detailed procedure, which will vary given the kind of assets to be transferred into the Trust, and should be overseen by an attorney.
What is a Living Trust?
A Living Trust is a trust that is created and becomes operative during the lifetime of the Grantor. This is distinguished from a testamentary trust which only becomes operative by virtue of a Will, upon the death of the Testator (willmaker).