Asked by Riski Putro on Jun 19, 2024

verifed

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.
verifed

Verified Answer

KS
Kenzie ScottJun 22, 2024
Final Answer :
Living trusts can be irrevocable or revocable. The distinction between these two types of living trusts is an important one for estate planners.
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.