LIVING TRUST Meaning and
Definition
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A living trust, also commonly referred to as an inter vivos trust, is a legal arrangement created during an individual's lifetime to manage and distribute their assets upon death or incapacity. It is established by a grantor who transfers their ownership of various assets, such as real estate, investments, bank accounts, or personal property, into the trust. The grantor designates a trustee to manage and administer the trust according to the terms established in the trust document.
One of the main advantages of a living trust is the ability to bypass the probate process, which is often time-consuming, expensive, and subject to public disclosure. By transferring assets to a trust, they are no longer considered part of the grantor's estate, thus avoiding the probate proceedings upon their death.
Living trusts can be revocable, meaning they can be modified or revoked entirely during the grantor's lifetime, or irrevocable, which offers more asset protection but restricts the grantor's ability to make changes. Additionally, living trusts can be established as individual trusts or joint trusts for multiple individuals, such as spouses.
The terms of a living trust may outline specific instructions for asset distribution, such as providing for the surviving spouse or children, donating to charities, or even establishing ongoing support for beloved pets. Living trusts offer flexibility, privacy, and the potential to minimize estate taxes, making them a valuable tool for comprehensive estate planning.
Common Misspellings for LIVING TRUST
- kiving trust
- piving trust
- oiving trust
- luving trust
- ljving trust
- lkving trust
- loving trust
- l9ving trust
- l8ving trust
- licing trust
- libing trust
- liging trust
- lifing trust
- livung trust
- livkng trust
- livong trust
- liv9ng trust
Etymology of LIVING TRUST
The etymology of the word "living trust" can be traced back to the Latin roots of the individual words involved.
1. Living: The word "living" derives from the Old English word "lifian", which means "to be alive" or "to have life". It is also related to the Old Norse word "lif", meaning "life". Over time, this word evolved into the Middle English "living", which has retained its meaning throughout the centuries.
2. Trust: The word "trust" has its origins in the Old Norse word "traust", which means "confidence" or "reliance". It is related to the Middle English word "trist", meaning "confidence" or "faith". The idea of trust evolved into a legal term, referring to a legal arrangement where a person (the trustee) holds property or assets for the benefit of another person (the beneficiary).
Similar spelling words for LIVING TRUST
- living rock,
- living room,
- living thing,
- living granite,
- living will,
- living death,
- living stone,
- living quarters,
- livingston,
- living wage,
- livingstone,
- living space,
- living together.
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