What Is a Living Trust?

A revocable living trust is also commonly referred to as a revocable inter vivos trust, a grantor trust or, simply, a living trust. A living trust may be amended or revoked by the person creating it (commonly known as a "trustor," "grantor," or "settlor") during the trustor's lifetime, as long as the trustor is competent.

A trust is a written agreement between the individual creating the trust and the person or institution named to manage the assets held in the trust (the "trustee.") It is proper for you to be the initial trustee of your living trust. 

Eventually since management support is expected, your trust should designate an individual or bank or trust company to act in your place. The terms of the trust become irrevocable on the trustor's death. Because the trust contains terms which provide for distribution of your assets on and after your death, the trust acts as a substitute for your will.  The trust removes the need to probate your will with respect to those assets which are held in your living trust at your death.

You should complete a will even if you have a living trust which provides for the transfer of any assets held in your name at your death to the trustee of your living trust.  This is so any assets not included in the trust may be divided under your wishes as set forth in your living trust.