Living trusts are a commonly used estate planning tools, because they are flexible and recognized in every state. The person who creates the trust maintains control of her property during her lifetime and upon her death, the property automatically transfers to the beneficiaries named in her trust.
Living Trusts Valid in All States
A living trust, also known as an inter vivos trust, is created during a person's lifetime. The person who creates the trust, the settlor or trustor, places property in the name of the trust for the benefit of others, known as beneficiaries, who will receive the property upon the settlor's death. The settlor also designates a trustee to manage the trust, although settlors often serve in this capacity while they are alive. While living, the settlor can make changes to the trust, including moving property in and out of it or changing beneficiaries. Once a valid living trust is created, it is valid in every state, not just the state in which it was created. This means that a settlor can move to a different state after creating her living trust, and the new state will honor it.