What is a "living trust"?

A living trust is defined as a trust that is established during the lifetime of the grantor, allowing the grantor to manage their assets effectively while they are still alive. This type of trust becomes particularly beneficial because it can help avoid probate, ensuring that the assets are distributed to the beneficiaries more smoothly and efficiently upon the grantor's death.

Additionally, one can retain control over the assets in a living trust, modifying the trust terms, adding or removing assets, or even revoking it entirely, depending on the type of living trust created (revocable or irrevocable). The flexibility and control over the assets during the grantor's lifetime make a living trust a popular estate planning tool.

In contrast, a trust created after the grantor's death does not fit the description of a "living trust," as it would be a testamentary trust. A trust that can only be altered through a court order is not in line with the general characteristics of living trusts, which typically offer the grantor the ability to amend terms more freely. Lastly, a trust designed specifically for charitable donations is more aligned with charitable trusts, which serve a different purpose than those typically associated with a living trust.