Living Trust

Published: | Updated: July 30, 2017

Definition - What does Living Trust mean?

A living trust is a type of trust that a person sets up during their lifetime. When a person sets up such a trust, they put a number of assets into it, which will then be managed by a trustee.

These arrangements are relevant to the insurance industry, since many people put life insurance policies into living trusts.

Insuranceopedia explains Living Trust

When a person sets up a living trust, the goal is often to have assets pass on to beneficiaries in a way that is more favorable (in terms of taxation or other regulations) than they might be through another inheritance process.

Assets in a living trust do not need to go through a probate process. This means that putting assets into a living trust can save a lot of time and money, which can be very worthwhile since life insurance policies are often worth large sums of money.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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