A living trust (also referred to an “inter vivos” trust)is a separate entity which holds legal title of property for the benefit of another person. With a living trust, the grantor – creator of the trust – generally benefits from the trust during his or her lifetime and then the trust distributes the property according to the trust instrument. A trust, being a separate entity, does not go through the probate process. If the all of the grantors property is transferred into the trust, they can avoid probate because they will not any property in their estate. A living trust can also help reduce a couple’s estate tax burden.
Living Trusts - A Tool to Avoid Probate