Making a living trust
Funding living trust

When making a living trust, the Grantor signs a document called a Declaration Of Trust, which is similar to a Last Will and Testament. The party making the trust is called the Trustor, Donor, Grantor, or Trust Maker. In the document, the Grantor typically names himself or herself as trustee, and transfers assets to that trust (i.e., the transfer is actually made from the Grantor to himself, as Trustee). Because the Grantor is named as the trustee, he or she maintains full control over the assets. The normal type of living trust is revocable until the death of the Trustor.

The law of trusts and estates, also known as the law of successions in civil law, governs how to create a living trust, the types of trusts, the management of trust affairs and the disposition of property. It can also be used to make philanthropic bequests or gifts through the creation, maintenance and supervision of charitable trusts.


How do I make a living trust? Fortunately, it is now easier than ever to develop your own legally valid living trust, quickly and economically. Online legal document preparation services and specialty software are readily available and very affordable. These tools can produce a valid living trust within just a day or two. In the event that you have a more complex situation and feel you need to consult an attorney and/or tax adviser to prepare a more customized plan for your situation this initial plan can serve as the basis of a more detailed plan. If you do not have an estate plan living trust now, I urge you to consider preparing one soon.


Making a living trust is an important personal estate strategy to pass assets to heirs and avoid probate. Avoiding probate saves significant expense, much time (a year or more is not uncommon for probate), and maintains asset privacy. The probate process is public, while distribution through a living trust is not.

Creating an estate plan living trust can also be useful in planning for the contingency of incapacity or senility. The trust instrument can provide that the other co-trustee shall act as sole trustee if the grantor becomes incompetent or disabled.


To create a living trust, the individual transfers title to some of their assets into the trust. This is called funding the living trust. The Trustee, who is often the grantor, administers the trust for the benefit of himself and at least one other beneficiary. The trust may also name the remainder beneficiaries who will receive the remaining assets after the grantor is deceased. The remainder beneficiaries receive nothing until the grantor dies.

Parties To The Trust are the Grantor, trustee, the successor trustee, and the beneficiaries.

It may be advisable to use a corporate co-trustee such as a bank. A substantial advantage of this approach is that a corporate trustee can act in perpetuity, whereas an individual cannot. Check with the bank to determine its' policies on minimum estate size and costs of administration.

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