Living Trust
What Does Living Trust Mean?
A living trust is a type of trust that a person creates during their lifetime, where they transfer assets into the trust to be managed by a trustee.
These trusts are relevant to the insurance industry because many individuals place their life insurance policies into living trusts to manage the distribution of benefits upon their death.
Insuranceopedia Explains Living Trust
When a person establishes a living trust, the goal is often to transfer assets to beneficiaries in a more favorable way, such as through reduced taxation or other regulatory advantages, compared to traditional inheritance methods.
Assets held in a living trust do not need to go through probate, which can save significant time and money. This is especially beneficial when dealing with life insurance policies, which are often worth large sums of money.
