Living Trust
A trust created during your lifetime (as opposed to one created by your will after death). Living trusts help your estate avoid probate because assets in the trust pass directly to beneficiaries.
Legal Definition
An inter vivos trust established during the grantor's lifetime, as distinguished from a testamentary trust created under the terms of a will. May be revocable or irrevocable.
Practical Example
Instead of just writing a will, Linda creates a living trust and transfers her house, bank accounts, and investments into it. When she dies, her children receive these assets without going through probate court.