What is a "living trust"?

A living trust is indeed established during an individual's lifetime for the purpose of managing their assets. This type of trust allows the grantor to maintain control over the trust assets while they are alive, with the ability to specify how those assets will be handled both during their lifetime and after their death. Living trusts can help facilitate the transfer of assets upon death and can often avoid the probate process, which can be lengthy and costly.

In contrast, a trust created after an individual's death does not qualify as a living trust, as it would not be established until the individual has passed away. Likewise, a trust that only takes effect at the time of a guardian's death does not align with the characteristics of a living trust, as it would not be in effect during the individual's lifetime. Lastly, a trust that is solely for charitable purposes fails to capture the broader intent of a living trust, which can be used for various personal or family objectives beyond just charitable giving.