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 Kentucky, 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 a trust agreement, which outlines how the assets should be managed and distributed. The trustee, who can be an individual or an institution, has a fiduciary duty to manage the trust assets in the best interests of the beneficiaries according to the terms of the trust. Living trusts are often used to avoid probate, provide for management of assets in case of incapacity, and maintain privacy regarding the distribution of assets. Unlike a testamentary trust, which is established upon the death of the individual and is part of a will, a living trust is effective immediately upon creation and funding. Kentucky law, including the Kentucky Trust Code, provides the legal framework for the creation and administration of living trusts, and it is advisable to consult with an attorney to ensure that the trust is properly established and meets the grantor's estate planning goals.