What is a living trust and how does it work?

Answer 1

Basically it's where you assign ownership of your assets to someone else but retain the lifetime use and benefits of those assets. I have one for my son - he is four. He owns my home, our rental property and retirement accounts - however my husband and I are solely responsible for the upkeep and financial decisions on the assets. Basically if we die unexpectedly he gets to avoid probate and my mother has immediate financial access for the benefit of my son. I've also heard of this type of trust being used in divorce cases to hide assets but I'm not sure how it works.

Answer 2

Here, please read this:

http://en.wikipedia.org/wiki/Living_trust