Living trusts are a popular estate planning option for individuals who wish to live in comfort while leaving as much money as possible to their heirs. When assets are placed in a living trust by a grantor, the grantor can also become the trustee and beneficiary as long as he/she lives. That way, this type of revocable trust remains under the control of the grantor and can be changed at any time.

Upon the grantor's death, the trust becomes irrevocable and a different set of rules come into play. The remaining assets are inherited by beneficiaries named in the trust deed (the instructions outlining how to administer the trust). A new trustee (called a successor trustee) is also designated in the deed. Assets in a trust are not counted as part of the estate that goes through probate. Since probate fees are often calculated based on the total value of all the assets going through probate, this can save a significant amount of money for the beneficiaries.