Simply put, a living trust is a written agreement between two parties. The trustor or grantor establishes the trust and the bank, person, or persons who manage it, is the trustee or trustees.

The Trust Agreement details how the trust operates during the grantor’s life and what happens to the assets following his or her death. Extreme care must be taken when considering the elements of the trust, and the written agreement that describes its operation will specify in detail who receives the assets when the trust terminates, any payments that can be made from the trust, and who will serve as trustee and successor trustee.