In a living trust, assets including savings accounts, real estate and securities are put into the trust while the owner is still alive. Legal title to the assets is transferred to a trustee, and the owner can name himself or herself the trustee. The trust contains instructions for handling assets during the owner's lifetime and distributing them after death.

There are two types of trusts, revocable and irrevocable. A revocable trust can be changed or revoked at any time during the owner's lifetime. An irrevocable trust cannot be recalled or abolished after its creation Living trusts are a way to avoid probate, the procedure which determines the distribution of a deceased person's property, whether or not there is a will.

A living trust avoids probate when it has been properly funded. Any property in which the decendent has any incident of ownership can be included even if it is not in the deceased's name Probate may be a costly, time-consuming process, although that is not true in every case. However, some salespeople, paint living trusts as a magical cure for all estate planning, making probate look like an expensive and very agonizing process. Often the do-it-yourself kits are nothing more than form-letter type documents which do not automatically transfer consumers' assets into the trust, and may have no standing in court.

BBBs report that consumers are being pressured to sign contracts on the spot, and write checks for hundreds, sometimes thousands, of dollars to establish a living trust Because law, costs and the amount of time affecting both probate and trusts vary from state to state, consumers should contact a reputable local attorney or estate planner to discuss their personal situation. Depending on individual circumstances, a living trust may be a good option; however, it is not for everyone.

Consumers who find living trusts the best solution, should not be taken in by fraudulent offers and extravagant promises from fly-by-night operators. Instead, they should consult with a trusted adviser or contact their local BBB for a reliability report.