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 Colorado, a living trust, or inter vivos trust, is a legal arrangement created during a person's lifetime, allowing them to control their assets and provide for beneficiaries without going through probate upon death. The person who creates the trust (the grantor or settlor) transfers assets into the trust and typically serves as the initial trustee, managing the assets according to the terms set out in the trust document. The trust document will also name successor trustees to take over management if the original trustee is unable to continue. Beneficiaries receive assets or income based on the trust's provisions. Living trusts offer privacy and can be more efficient than wills, as they avoid the probate process. However, they do not provide tax advantages over wills. In contrast, a testamentary trust is established upon the death of the individual, as dictated by their will. Colorado law, including the Colorado Trust Code, governs the creation and administration of living trusts, and it is advisable to consult with an attorney to ensure that a living trust is properly established and meets the grantor's estate planning goals.