A revocable living
trust, more commonly called simply a "living in trust" is usually
used as a will substitute and probate avoidance device. Probate is the process
of transferring property from the dead to the living. It requires several legal
formalities and court oversight, including petitions, an oath, court orders,
and notices, before the transfer of the decedent’s property can be completed.
Property owned by a trust at the time of death avoids the formal probate
process. The reason that the living trust can avoid probate is that the trust
does not die with its grantor. The grantor or “trustmaker” may die; the
beneficiary may die; the trustee may even die. But the entity that owns the property
– the trust – continues to exist, and therefore the probate process – the
transfer of property from the dead at the living – is not required. Instead,
the trustee simply follows the instruction set contained in the trust document.
Frequently these instructions will be different depending on whether the trustmaker
is living or deceased. In other words, the creator of the trust usually has one
set of instructions as to how the trust should be managed during life, and
another set for how the trust should be managed after the trustmaker dies.
Usually during the trustmaker’s lifetime, the trust instructions require that
trust assets be used for the benefit of the trustmaker.  Upon death, the instructions frequently
provide for the distribution of the trust assets to the trustmaker’s
heirs.  This process of managing the
trust after the trustmaker’s death is known as trust administration.