living trust

A revocable trust whose terms become effective while the donor is still alive. Although the trust is the legal owner of property, investments, or assets in the trust, the creator of the trust (called a grantor) does not give up any control over the assets and can still buy or sell them. Those assets are used for the benefit of another person, called a beneficiary. A trustee and a successor trustee manage the trust. A living trust in many ways resembles a will. It includes instructions and details for handling the writer’s estate at death. However, unlike a will, it does not go through probate and prevents the court from controlling the deceased person’s assets. Also called inter vivos trust.