Trusts

The term Trust describes the holding of property by a trustee (which may be one or more persons or a corporate trust company or bank) in accordance with the provisions of a written trust instrument for the benefit of one or more persons called beneficiaries.  A person may be both a trustee and a beneficiary of the same trust.  Trusts can benefit everyone, not just the wealthy.

If you create a trust during your lifetime, you are described as the trust’s grantor or settlor, the trust is called a living or inter vivos trust, and the trust provisions are contained in the trust agreement or declaration. The provisions of that trust document (rather than your will or state law defaults) will usually determine what happens to the property in the trust upon your death.
The term “living trust” is generally used to describe a trust (a) which you can create during your lifetime, and (b) which you can revoke or amend whenever you wish to do so. You can also create an “irrevocable” living trust that is permanent and unchangeable, and is almost exclusively done to produce certain tax results.

You should complete a will even if you have a living trust which provides for the transfer of any assets held in your name at your death to the trustee of your living trust.  This is so any assets not included in the trust may be divided under your wishes as set forth in your living trust.