What is a primary benefit of a living trust?

A primary benefit of a living trust is its ability to allow for asset management during the trustor’s lifetime. This feature enables the trustor to maintain control over their assets while also providing a mechanism for their management should the trustor become incapacitated. By transferring assets into the trust, the trustor designates a trustee to manage those assets according to the terms specified in the trust document. This arrangement ensures that the trustor’s wishes regarding asset management are followed without the need for court intervention. Living trusts, therefore, provide significant advantages, such as flexibility and control, that are not present in other estate planning tools.

The other options highlight misunderstandings about the nature of living trusts. For instance, a living trust does require a written agreement to establish it and outline its terms. It does involve a trustee, who is responsible for managing the trust assets, and does not necessitate regular court reviews, distinguishing it from other types of trusts. These characteristics clarify why the correct answer emphasizes the ability to manage assets during the trustor's lifetime.