Also known as: living trusts · inter vivos trust
Written by attorneys · grounded in primary & secondary sources — see below
A revocable trust created by a settlor during lifetime to hold and manage property for the benefit of designated beneficiaries. The settlor typically serves as trustee and retains full power to revoke or amend the trust at any time. When properly funded with post-death dispositive provisions, the trust transfers assets outside probate upon the settlor's death.
Lucas Lee executes a will that directs his brokerage account to the trustee of the Lucas Family Living Trust. The trust was executed during his lifetime but held no assets until his death. The pour-over provision adds the account to the trust, allowing the trustee to distribute the assets according to the trust terms without probate administration.
Lillian Locke, domiciled in State A, creates a living trust holding securities and names a trustee in State B. After her death, a dispute arises over trust administration. The court applies the law of the state with the most significant relationship to the trust property and parties, considering the settlor's expectations and the need for predictable results in property transfers.
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Liam Larson transfers his home into a revocable living trust while retaining the power to revoke and control all distributions. After his death, a creditor obtains a judgment against the estate. The court includes the trust assets in the probate estate because Larson retained complete dominion during life.
Lamar Lewis executes a living trust agreement naming himself trustee and his nephew as beneficiary of corporate stock. He retains the power to revoke but the trust instrument immediately transfers legal title to the trustee. The court holds that the beneficiary acquires a present interest sufficient to validate the trust during Lewis's lifetime.
Luis Lopez funds a living trust with securities and serves as trustee until death. The trust grants him broad powers to alter distributions and invade principal. The IRS includes the trust corpus in his gross estate for tax purposes because the retained powers equate to ownership.
Lucy Liu places her art collection into a revocable living trust before death. Her daughter files a probate action in federal court seeking to invalidate the trust. The Supreme Court holds that the probate exception to federal jurisdiction does not bar the daughter's separate action to determine trust validity.
No. Marital property transferred to a revocable living trust remains marital property. The trust form affects only legal title and management, not the underlying ownership interests between spouses.
The devise lapses. A will may pour assets into an existing inter vivos trust, but revocation of the trust before the testator's death removes the receptacle and the property falls into the residuary estate unless the will provides otherwise.
Yes. Divorce automatically revokes any revocable disposition or fiduciary nomination in favor of the former spouse. The trust is then administered as if the former spouse had predeceased the settlor.
No. A living trust need not satisfy the execution formalities required for wills. It is created by declaration and transfer of property during the settlor's lifetime.
…statute says concerning the need for a trust corpus. This court was one of the first courts to validate pour-over devises to a living trust. In Second Bank-State St. Trust Co. v. Pinion , 341 Mass. 366, 371 (1960), decided prior to the adoption of G. L. c. 203, § 3B, we upheld a testamentary gift to a revocable and amendable…