A living trust—also known as an inter vivos trust—is a trust that is created and takes effect during the lifetime of the person who creates the trust and places assets in it (the grantor or settlor). The beneficiaries named in the living trust will receive the assets or the income from the assets, as provided by the trust agreement.

The living trust will name a trustee (and possibly successor trustees) to manage and administer the trust.

A living trust is in contrast with a testamentary trust that is created by a will and takes effect when the grantor or settlor (the testator who made the will) dies.

In Illinois, a living trust, or inter vivos trust, is a legal arrangement where a grantor places assets into a trust to be managed by a trustee for the benefit of designated beneficiaries during the grantor's lifetime. The trust is governed by the terms set forth in the trust agreement. Living trusts in Illinois are commonly used to manage assets, avoid probate, and maintain privacy, as the details of a living trust are not made public unlike a will. The trust document will name a trustee who is responsible for managing the trust assets according to the trust's terms and for the benefit of the beneficiaries. Successor trustees may also be named to take over if the original trustee is unable to serve. Living trusts can be revocable, allowing the grantor to make changes or revoke the trust during their lifetime, or irrevocable, which generally cannot be altered once established. This is distinct from a testamentary trust, which is created by a will and only comes into effect upon the death of the testator. Illinois law, including the Illinois Trust Code, provides the legal framework for the creation, management, and enforcement of living trusts.