Investor Glossary-living trustInvestor Glossary-living trustInvestor Glossary-living trustInvestor Glossary-living trustInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Living Trust

The HTML to link to this page
 

A living trust (also called a grantor trust, or revocable trust, or an inter vivos trust) is an agreement in which the person who established the trust, known as the grantor, transfers the estate to a designated trustee for subsequent management. A living trust is a revocable arrangement, whereby all rights to income and principal can be legally terminated or amended while the grantor is either alive or competent. The inception of a living trust occurs during the grantors lifetime. After his or her death, however, the living trust becomes irrevocable. A living trust is not a way to merely transfer assets. Living trust arrangements are initiated primarily in order to facilitate thorough and systematic management of an estate. Thus the successor of a living trust is typically a carefully chosen trustee. A living trust is also an effective means to forego the probate process that is sometimes associated with a will and help in situations of incompetence. Additionally, a living trust is an estate planning instrument that may help reduce estate taxes (especially for married couples).



Rate this living trust definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, balance sheet, current ratio, implied volatility, ex-dividend, APR, open position, reverse mortgage, deferred revenue, real GDP, wholly-owned subsidiary, inflation, Zero Cost Collar, Key Rate Duration, average price per share, VIX, limit order, labor relations, command economy, quality assurance, LIBOR, debt service coverage, FTSE, phantom income, 1031 exchange, ex-dividend date, per diem, stock split, stock market close, minority interest, cancelled check, covered put, dividends payable, 1035 exchange, class C shares, diluted share, required rate of return, margin rate, retained earnings, EBITDA, FICO score, 144a, deferred tax, risk management, option premium, annual return, 401a, irrevocable trust, liquidity ratio


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use