What exactly is a Joint Living Trust?

A Joint Living Trust is a form of changeable trust that is established in collaboration with another individual.

A Joint Living Trust is merely a Living Trust created in collaboration with another individual. For example, couples may choose to establish one Joint Living Trust rather than two distinct Living Trusts. It provides the convenience of a single record as well as other benefits such as greater anonymity, lower inheritance expenses, and simpler wealth administration. However, unlike when couples each have their own Wills or distinct Living Trusts, a Joint Living Trust gives the remaining spouse less freedom to alter the conditions of the trust in reaction to changing circumstances after the passing of the first spouse.

The Joint Living Trust typically provides for both partners, who are the Co-Grantors and the original Co-Trustees. They serve for as long as they are capable and eager to handle the Trust’s assets during their combined lifespan. After one partner’s demise, “disability,” or personal retirement, the other spouse can remain as Trustee. When neither Grantor acts as Trustee, the Trust is managed by a replacement Trustee (who is also mentioned in the Joint Living Trust deed).