A "Living Trust" is created while you are alive and of Sound Mind. All living trusts are designed to avoid Estate Administration and may in addition be used to reduce taxes, safeguard financial privacy, to regulate the use of assets if the owner becomes incapacitated and to manage their property in the long term.
Benefits of a Living Trust are:
- Avoids Estate Administration and distribute assets according to the Trust Deed.
- Offers higher level of confidentiality, as Estate Administration proceeding are a matter of public record.
A living trust can be either revocable or irrevocable. Revocable trust is when one reserves the power to revoke the trust document at any time. Irrevocable trust is when the settlor relinquishes assets to the intended beneficiaries and way to prevent the assets from being claimed by creditors in the event the settlor is declared a bankrupt.