A living trust can be a useful tool as part of a comprehensive estate plan. A living trust is generally used in conjunction with a will but may have a number of added benefits. A living trust can help you protect your assets to more of them can be passed along to your heirs. It can also help avoid unnecessary probate proceedings after you have passed on.

There are a number of ways to transfer your assets to your loved ones, even among trusts there are a variety of different types of trusts that may be used depending on your goals and circumstances.

A living trust is created and funded while you are still alive, rather than having the trust funded through assets in your estate. Creating this trust involves funding it by transferring assets from yourself to ownership by the trust. As the creator and the one who provides the assets for the trust you are known as the grantor or trustor.

You will also designate a trustee for the trust to control the assets of the trust. In some situations you may name yourself as the trustee so that you maintain control of the assets that you have used to fund the trust. If you are married you may also have your spouse act as a trustee as well. When one of you passes on the other maintains control of the assets in the trust. When both spouses have passed away control of the trust assets will transfer to the person that you have designated as the successor trustee.

Source: The Spectrum "Maintaining a living trust is important" May 14, 2007