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What is a living trust template?

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Quick Answer

A living trust template is an example of what a legal living trust looks like. It includes the trust maker's name, purpose of the trust, how it is funded, how the assets are managed and how payments are made during the grantor's lifetime. The template might also list trustee powers.

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Full Answer

A living trust template can be used to create a legally binding living trust so that the trust maker can transfer his assets to beneficiaries after his death. One of the biggest advantages of creating a living trust is that it can help keep an estate out of probate, which can be an expensive and time consuming legal process.

Before using a standard living trust template, an individual should make sure the total of his assets doesn't exceed the current federal estate tax applicable exclusion amount. If this is the case, the individual is better off turning to an experienced and reputable attorney who is familiar with assisting individuals with significant estates.

The two types of living trusts are revocable living trusts and irrevocable living trusts. Revocable living trusts are the most common and can be nullified or altered during the trust maker's lifetime. Irrevocable living trusts are used by those with significant estates and are usually more complicated to complete. Either type of trust should be looked over by an estate planning attorney.

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