A living trust shouldn’t feel like algebra. If you are considering a Living Trust or want to know more about what it means and how it works, then consider my simplified definition.

In general, this type of estate planning tool is a piece of paper that is controlled while we are alive. In other words, a document that allows flexibility.

When we die or become incapacitated, a living trust turns into an irrevocable trust. So, getting the living trust language right the first time is important.

If you need help addressing the good, the bad, and the in-between of this tool, you found the right place.

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Why Is It Called A Living Trust?

I see a lot of people who are fearful that a trust makes life more complicated. And, I see a lot of families get scared off by fancy names like a conduit trust, grantor trust, a see through trust, or even a “complex” trust.

For now, keep it simple. Just like there are hundreds of different makes and models of cars, there are an infinite number of trusts and types. Every trust is different because every person is different.

Now is not the time to turn back. Remember, this is about keeping this simple and down to one sentence versus outlining everything that you should write.

A Living Trust versus a Revocable Trust

Generally, a living trust and a revocable trust are one in the same. However, they don’t have to be. A living trust that is revocable too is a piece of paper that allows a person to terminate or end the trust.

Living Trust versus a Inter Vivos Trust

In Minnesota, a living trust and an inter vivos trust are the same. A living person who is at least 18 years of age creates a trust during their lifetime. The trust document be revocable or irrevocable, simple or otherwise.

Reasons for a Living Trust

In Minnesota, there are many reasons why a person or couple create a living trust. As a reminder, the reasons are different for every person and family.

In no particular order, a person entertains a living trust to:

• Avoid or reduce the risk of probate,
• Prevent the government from making decisions on their behalf,
• Make life easier for a spouse,
• Serve the needs of young children,
• Tax goals,
• Serve the needs of grandchildren,
• To assign a specific trustee,
• Privacy,
• Avoid time delays,
• Land owned in more than one state, and
• Reduce conflict.

Indeed, there are more reasons for having a living trust. However, the reasons are generally specific to each person and family.