Living trust

A legal arrangement created during an individual’s lifetime, allowing the settlor (the person establishing the trust) to transfer assets into the trust for the benefit of one or more beneficiaries. The settlor appoints a trustee to manage these assets according to the terms outlined in the trust agreement. A living trust can be revocable, meaning the settlor can modify or revoke it during their lifetime, or irrevocable, meaning it cannot be changed once established. Living trusts are commonly used in estate planning to help avoid probate and streamline the transfer of assets.