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


Investor Glossary | 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