Revocable living trusts, sometimes called “living trusts,” have become a popular alternative to a will as a way to pass property to your beneficiaries when you die. If all your assets are placed in the trust, your estate will not need to go through probate to distribute those assets. Instead, they will pass under the terms of the trust you have created. Like a will, the trust is revocable, so you can change or end it at any time.

These trusts are established by a written agreement which appoints a “trustee,” who is the manager of the trust. Typically, you appoint yourself as the trustee. You then transfer your assets from your individual name to yourself as trustee of the trust. Everything you transferred to the trust then belongs to the trust but, as trustee, you maintain complete control. You can buy and sell trust assets, and even give them away if you wish.

Like a will, the living trust provides how your property goes when you die. When you die, the trustee generally is directed either to distribute the trust property to your beneficiaries, or to continue to hold and manage the property for the benefit of your beneficiaries. A living trust typically will contain all the same provisions for your beneficiaries as a will. However, a living trust agreement is usually longer and more complicated than a will.