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 New Mexico, a living trust, or inter vivos trust, is a legal arrangement created during a person's lifetime, allowing them to control their assets and provide for beneficiaries without going through probate upon death. The person who creates the trust (the grantor or settlor) transfers assets into the trust and typically serves as the initial trustee, managing the assets according to the terms set out in the trust document. The trust document will also name successor trustees to take over management if the original trustee is unable to continue. Living trusts can be revocable, allowing the grantor to alter or dissolve the trust during their lifetime, or irrevocable, which means the trust cannot be changed once established. This estate planning tool helps ensure that assets are distributed to beneficiaries as intended by the grantor, potentially avoiding the time and expense associated with probate. It is distinct from a testamentary trust, which is created by a will and only comes into effect after the grantor's death. To ensure a living trust is properly established and meets all legal requirements, it is advisable to consult with an attorney experienced in estate planning.