The basic concept of a Living Trust (also called a Family Trust or a Revocable Living Trust, they are the same thing) is that you create a set of rules, and then you place your assets under that set of rules. Typically, one of the rules is that you are the “trustee” (that is, the manager) of the trust as long as you are able to do so, and another rule is that somebody you feel comfortable with, is the successor trustee when you die or become incompetent. Another rule is that you can use the assets in the trust anyway you want. Still another rule is that if you become unable to manage your affairs, the successor trustee uses the assets in trust to take care of you. And very importantly, you make a rule saying who gets your assets after you die, and when they get them.

A Revocable Living Trust can be amended (changed) by the creator of the trust (the “Grantor”) at any time. So if you set up a Living Trust, and then the law changes, or one of your heirs becomes a problem, or you have a falling out with your successor trustee, you simply amend the trust. It is a very easy process.

A Will is a document which directs the probate court, as to what you want to happen with any assets which have to go through probate. If you have a Living Trust, you avoid probate by putting your assets into the trust. The trust does not die when you die, it just goes on living with a different manager.