Trusts are not new. Soon after the Norman Conquest of England in 1066, landowners found it to their advantage to convey legal title to another person and keep the “use” to themselves. The Franciscan Friars used Trusts. They did so to enjoy the benefits of ownership while obeying their oath of poverty.

In appropriate circumstances, the Living Trust is a Will Substitute because it does what your old Will used to do. That is, your old Will used to direct who was to receive your assets after you die. Now your Living Trust directs who shall receive your assets after you die.

The Living Trust is also a Probate Substitute because it does what probate used to do. That is, the probate process used to transfer your assets to your loved ones after your death. Now your Living Trust transfers your assets to your loved ones.

Here is exactly how it all works. Think of your car. Suppose you want to have your car transferred to your son or daughter at the time of your death. You (the Trustor) could make an agreement (a Trust) with John Jones (the Trustee). John Jones would hold the legal title to your car until your death. When you die, John Jones would transfer legal title to your son or daughter. During your lifetime you (the lifetime beneficiary) drive the car.

John Jones has nothing to do until your death. When you die, John Jones simply signs the title certificate (as Trustee) and delivers the title certificate to your son or daughter (the beneficiary after your death). Your son or daughter takes the certificate to the motor vehicle department and registers the car in his or her name.

In “real life” we eliminate the middleman (John Jones) from your Living Trust. In your Declaration of Trust you state you are the Trustor, you are the Trustee during your life, and you are the Beneficiary during your life. When you die, your Living Trust needs a new Trustee. We call the person who replaces you as Trustee the Successor Trustee. You can name your son or daughter as Successor Trustee. Then, when you die, your son or daughter becomes the Successor Trustee. He or she signs the certificate of title (as Successor Trustee) and transfers title to himself or herself as Beneficiary.