Living Trust as a Beneficiary
Living trusts are beneficial because they allow the transfer of property into the trust and may avoid probate procedures. Living trusts, also called inter-vivos trusts, can also be funded as a beneficiary at the settlor's death.
Laws in your state may vary. Seek the assistance of an attorney in your state regarding these legal matters.
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Definition
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According to "Black's Law Dictionary," an inter-vivos trust is a trust created during the settlor's lifetime.
Benefits
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Living trusts funded during the lifetime of the settlor by property transfer or as a beneficiary to the will of another individual can pay income to the settlor during his life. The use of a living trust funded prior to the death of the settlor may also save estate settlement costs.
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Detriments
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If the living trust is not funded until after the death of the settler and is only funded by being a beneficiary to the settlor's will, the trust would not be paying income to the settlor during her lifetime.
Warning
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References
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