What Is a Living Trust?
A living trust, also called a revocable living trust or family trust, is a legal document created during your lifetime that allows your assets to be managed and transferred according to your wishes. Many people use a living trust to avoid probate, maintain privacy, and make things easier for their loved ones. This page explains what a living trust is, how it works, who typically benefits from one, and how you can create a living trust online using a simple, guided process.
Understanding Living Trusts
A living trust is a legal arrangement created while you are alive that holds ownership of certain assets. It is also commonly called a revocable living trust because you can change, update, or cancel it at any time during your lifetime. In most cases, you act as your own trustee, which means you keep full control of everything in the trust. If you pass away or become incapacitated, a successor trustee you choose steps in and follows the instructions you already set. Assets held in the trust can be transferred to beneficiaries without going through probate court.
How a Living Trust Works
A living trust works in three straightforward stages. First, the trust is created and the people involved are named, including trustees and beneficiaries. Second, assets are transferred into the trust. This step is often called funding the trust. Funding a trust means retitling assets, such as changing the name on a property deed or bank account, so they are owned by the trust rather than by you personally. Third, the trust instructions control how those assets are managed during your lifetime and how they are distributed later.
What Assets Go Into a Living Trust
Many common assets can be placed into a living trust, including real estate, bank accounts, investment accounts, and personal property. Assets that are never transferred into the trust are not controlled by it. Proper funding is essential for the trust to work as intended. For a complete walk-through of the funding process, see our guide on how to fund a living trust.
Who Should Consider a Living Trust
A living trust may be a good fit if you own a home or other real estate, want to avoid probate, value privacy, want to leave clear instructions for loved ones, or have children or dependents. Living trusts are commonly used by everyday individuals and families, not just high net worth households. Learn how living trusts work under California law in our California Living Trust Guide.
Living Trust vs. Will
A living trust and a will both allow you to state your wishes, but they function differently. A will typically goes through probate, which can be time consuming and public. A living trust is designed to avoid probate for assets held inside the trust. A will only takes effect after death. A living trust can also provide instructions if you become incapacitated. Many people use a living trust as the foundation of their estate plan, supported by additional documents.
What a Living Trust Does Not Do
A living trust does not automatically include assets that are never transferred into it. It does not replace documents such as powers of attorney or healthcare directives. It does not automatically reduce taxes by itself. Understanding these limits is just as important as understanding the benefits. 299Trust plans include these supporting documents, such as a Durable Financial Power of Attorney, Medical Power of Attorney, and Advance Healthcare Directive, alongside your living trust. To see the full list of documents included in your plan, visit What’s Included. For a balanced view, read about the disadvantages of having a living trust before deciding.
Types of Living Trusts
The two main types are revocable and irrevocable living trusts. A revocable living trust is the most common choice for everyday families. It allows you to maintain control of your assets, make changes at any time, and name a successor trustee who steps in if you pass away or become incapacitated. An irrevocable trust, by contrast, cannot be easily changed once created. It is typically used for advanced tax planning or asset protection strategies. For a detailed comparison, see our guide on revocable vs irrevocable trusts.
Benefits of a Living Trust
The most common reasons people create a living trust include:
Avoid probate - Assets in a properly funded living trust bypass the probate process entirely, saving your family time, money, and public exposure.
Maintain privacy - Unlike a will that goes through public probate court, a living trust keeps the details of your estate private.
Plan for incapacity - If you become unable to manage your own affairs, your successor trustee can step in immediately without court involvement.
Keep control - With a revocable living trust, you remain in full control of your assets during your lifetime. You can change the trust or cancel it at any time.
Reduce costs - Probate can cost 3% to 7% of your estate's value. A living trust helps your family avoid those expenses.
For a deeper look at why families choose a trust, visit Why Trusts.
Two Clear Paths, One Simple Process
Create a Living Trust Online - Starting at $299
Select the option below to follow the path designed for your situation.
Traditional attorney-drafted living trusts typically cost $1,500 to $3,000 or more. With 299Trust, you can create a complete, state-specific plan starting at $299 for individuals or $399 for joint plans. See Pricing for details
Living Trust for Individuals & Joint Plans
Create a complete, state-specific estate plan designed for individuals and joint plans who want a clear and affordable way to protect their assets and help reduce probate delays. Ideal for those who value clarity, privacy, and control over how their affairs are handled.
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Creating a living trust doesn't have to be complicated or expensive. 299Trust walks you through a simple online questionnaire about your situation, then generates your complete, state-specific estate plan — delivered to your inbox and ready to sign. Most families are surprised by how affordable it is. Explore our full living trust cost breakdown or find out how to set up a trust without an attorney.
