A
trust, containing property, created during a person's lifetime. The trust document directs the management and distribution of the trust property during the grantor's lifetime and at death or disability. A grantor is the person that creates the trust and may also be called settlor or trustor.
Living trusts are typically revocable, which means a person can change it at any time provided the grantor is legally competent. Compare: Irrevocable Trust.
Lifetime Trusts may be used for asset management, will substitutes, probate avoidance, in the event of the grantor's incapacity among other uses.
Requirements for creating a Valid Trust
1. The trust include demonstrate the intent to create a fiduciary relationship.
2. Property must transferred to the trust.
3. The trust must name a beneficiary.
4. The trust must identify a trustee but the trust will not fail without a trustee.
5. The trust must be created for a valid purpose.
6. The trust must comply with formalities. It must be in writing and executed with 2 witness or as executed according to rules for conveying real property.