During what period may a trust be effective?

A trust can be effective both during the trustor's lifetime and after death because it can be structured in a variety of ways to meet the needs and intentions of the trustor. Many trusts, especially revocable living trusts, allow the trustor to maintain control and management of the trust assets while they are alive. This means the trust is actively functioning during the trustor's lifetime, allowing for benefits such as seamless asset management and potentially avoiding probate upon death.

Upon the trustor’s passing, the trust becomes irrevocable (in most cases) and continues to govern the distribution of assets according to the trust's terms. This dual functionality—serving while the trustor is alive and continuing after death—demonstrates the flexibility and utility of trusts in estate planning.

In contrast, trusts that operate solely posthumously or only during a trustor’s life would fail to take advantage of the full spectrum of benefits trusts can offer, including asset management and distribution, which makes their effectiveness much broader and more beneficial than those limited to specific circumstances.