What type of trust is created during the owner's lifetime?

A living trust is a type of trust that is established during the lifetime of the property owner. This trust allows the grantor to manage their assets while they are alive and to outline the distribution of those assets upon their death. One of the main advantages of a living trust is that it helps avoid probate, making the transfer of assets smoother and potentially more private after the owner passes away.

Unlike a testamentary trust, which is created through a will and comes into effect only after the owner's death, a living trust is active as soon as it is established. Additionally, while revocable and irrevocable trusts are types of living trusts, the term "living trust" encompasses both forms, allowing for adjustments to be made during the grantor's lifetime in the case of a revocable trust. In contrast, an irrevocable trust cannot be modified once it is created. Therefore, the correct choice is a living trust as it represents a broader category of trusts that can be established while the owner is still living.