Living Trusts Made Simple
A living trust is a legal document created during your lifetime that allows your assets to be managed and transferred according to your wishes. Many people use a living trust to avoid probate, maintain privacy, and make things easier for their loved ones. This page explains what a living trust is, how it works, who typically benefits from one, and how you can create a living trust online using a simple, guided process.
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What Is a Living Trust?
A living trust is a trust created while you are alive that holds ownership of certain assets. In most cases, you act as your own trustee, which means you keep full control of the assets during your lifetime. If you pass away or become incapacitated, a successor trustee you choose steps in and follows the instructions you already set. Assets held in the trust can be transferred to beneficiaries without going through probate court.
How a Living Trust Works
A living trust works in three straightforward stages. First, the trust is created and the people involved are named, including trustees and beneficiaries. Second, assets are transferred into the trust. This step is often called funding the trust.
Third, the trust instructions control how those assets are managed during your lifetime and how they are distributed later.
What Assets Go Into a Living Trust
Many common assets can be placed into a living trust, including real estate, bank accounts, investment accounts, and personal property. Assets that are never transferred into the trust are not controlled by it. Proper funding is essential for the trust to work as intended.
Who Should Consider a Living Trust
A living trust may be a good fit if you own a home or other real estate, want to avoid probate, value privacy, want to leave clear instructions for loved ones, or have children or dependents. Living trusts are commonly used by everyday individuals and families, not just high net worth households.
Living Trust vs Will
A living trust and a will both allow you to state your wishes, but they function differently. A will typically goes through probate, which can be time consuming and public. A living trust is designed to avoid probate for assets held inside the trust. A will only takes effect after death. A living trust can also provide instructions if you become incapacitated. Many people use a living trust as the foundation of their estate plan, supported by additional documents.
What a Living Trust Does Not Do
A living trust does not automatically include assets that are never transferred into it. It does not replace documents such as powers of attorney or healthcare directives. It does not automatically reduce taxes by itself. Understanding these limits is just as important as understanding the benefits.
Two Clear Paths, One Simple Process
Create a Living Trust Online - Starting at $299
Select the option below to follow the path designed for your situation.
Living Trust for Individuals & Families
Create a complete, state-specific estate plan tailored for homeowners, individuals, and families who want a straightforward way to protect their assets and avoid probate. Perfect for anyone who wants clarity, privacy, and control over how their affairs are handled.
Start When You’re Ready
299Trust offers a DIY online process designed to be simple and easy to follow. You answer clear questions about your situation and preferences. Your documents are generated based on your responses. This approach is designed for people who want clarity and control without unnecessary complexity or high legal fees.
