Living trust...?
Aditya R khandelwal
(Querist) 13 January 2010
This query is : Resolved
whAt iS a livIng trust?
Is it applicable in India?
If it is applicable Can we Sell the Land after transefing to Living trust.
A V Vishal
(Expert) 13 January 2010
A Living Trust is a legal document that is made by "The Grantor", (the creator) with regard to his property and assets, while he is still alive and even be its Trustee, to ensure that the functioning of it is done in accordance to his/her wishes. It is a Private Trust.
A Living Trust is also referred to as an Inter Vivos Trust, which translates as a Trust between living persons i.e. It comes into effect while the Grantor is alive
A Living Trust is revocable which means that the grantor can terminate the Living Trust during his lifetime. This ensures complete control over the assets.
Living Trust is created to hold assets, so that the beneficiaries (persons who are entitled to the benefits) can inherit them in due course of time.
The Grantor (also referred as Trustee, settler, donor or the creator) is responsible for the creation of the Trust.
It is he /she who puts in the assets, in the Trust.
The Grantor is responsible for laying down the rules and regulations of the Trust.
He executes a written declaration which lays downs all the essential features of the Trust.
There can be one or more Grantors of the trust. A couple can make a trust together and in the Trust Deed lay down clearly who their successors are going to be.
