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 Tennessee, 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 out in the trust agreement. Living trusts in Tennessee are used for estate planning purposes, such as avoiding probate, managing assets in the event of incapacity, and maintaining privacy. The trust document will specify how the assets are to be distributed to the beneficiaries. 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. Tennessee law, including the Tennessee Uniform Trust Code, provides the statutory framework for the creation and administration of living trusts. It is important for individuals to comply with these laws and to properly fund the trust with their assets to ensure that the trust operates as intended. An attorney can provide specific guidance on how to establish a living trust in Tennessee and ensure that it meets all legal requirements.