Living Trusts
A living trust, also known as an inter vivos trust, is a legally binding trust which is set up during one's lifetime. Like any other trust, a living trust is a way of the settlor, or creator of the trust, legally securing assets and passing them on to whomever they wish.
A living trust must legally adhere to the terms and guidelines as set out in the trust's deeds. These trust deeds will clearly spell out the settlor's desires regarding assets and dependents and heirs who may stand to benefit from them.
Unlike a will, a living trust may come into effect during the settlor's lifetime. There is also the advantage of a living trust avoiding the often costly and time consuming period of probate associated with a will. This means that assets can be transferred quickly and relatively stress free after the death of the settlor.
Setting up a trust can be a complicated process and you must be aware of all your financial responsibilities involving the taxation of different assets. If you would like help on deciding if a living trust is the best way to protect your assets talk to a member of our partner independent financial advice team today:
ABOUT TRUST ONLINE