Asked by Riski Putro on Jun 19, 2024
Verified
What are the two kinds of living trusts? How do they differ? How are they established and administered?
Living Trusts
Legal documents that allow individuals to place assets in a trust to be managed by a trustee for the benefit of the beneficiaries, which can be altered or revoked during the grantor's lifetime.
Established
Something that has been in existence for a long time and is therefore recognized and accepted.
Administered
The act of managing or supervising the execution, use, or conduct of operations, laws, or policies.
- Comprehend the various categories of trusts and their distinct features.
- Comprehend the instruments of estate planning that avoid the probate procedure.
Verified Answer
In an irrevocable living trust, the grantor permanently gives up control over the property. In a revocable living trust, in contrast, the grantor retains control over the trust property during his or her lifetime.
Learning Objectives
- Comprehend the various categories of trusts and their distinct features.
- Comprehend the instruments of estate planning that avoid the probate procedure.
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