What are trusts and living trusts?
A. A trust is an arrangement whereby property is managed by one person, called "the trustee", for the benefit of another person, called "the beneficiary". The trustee holds legal title to the property, and owes a fiduciary duty to the trustee. The trust is created by the grantor, who entrusts his or her property to the trustee for the benefit of the beneficiary of his or her choice. The grantor does not have to designate someone else to be the trustee, but may choose to be the trustee himself. Because the grantor may revoke the trust at any time, it is often referred to as a "revocable trust".
A living trust, or "inter vivos" trust, is a trust that is created by the grantor during the grantor's lifetime, rather than upon the grantor's death.
