What is a Living Trust?

A Living Trust is a type of trust that is used to hold the personal assets of an individual during their life and then distribute those assets after their death without the necessity of a probate proceeding.  In a Living Trust, the assets of the person creating the trust, known as the Settlor, are placed into the Trust to be managed by a Trustee for the benefit of the Settlor.  The Settlor may name themselves as the initial Trustee and someone else as a Successor Trustee to manage the assets following the death or incapacity of the initial Trustee.  In order to retain the homestead exemption for tax purposed, language must be included in the Trust that the Settlor retains the right to occupy the property as their principal residence.

 

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