A passive trust is the opposite of an active trust in that the trustee has no specific duties on behalf of the trust. A passive trust transfers property titles from one person to the other, but an active trust requires the trustee to distribute the assets of the trust to the beneficiaries. In a passive trust, the trustee isn’t engaged in carrying out any trustee duties.

In a passive trust, the trustee has ownership of property, but the control of property is in the hands of the beneficiaries. This is different from an active trust in that the trustee retains control of the trust instead of giving it over to the beneficiaries. Use an active trust to:

1. Transfer property titles from one person to another without retaining control.

2. Give the power over the passive trust to the beneficiaries rather than the trustee.

3. Provide for beneficiaries when a trustee is unable to carry out trust duties.

Action Steps
The best contacts and resources to help you get it done

Find passive trust information from passive trust specialists

A passive trust is a complex estate planning tool. To get the most benefit from this type of trust requires the right trust language. Getting the right passive trust advice means better passive trust management and appropriate control over trust assets for the benefit of your loved ones.

I recommend: Use Legalmatch.com by clicking on your state, selecting "Trusts and Estates" in the type of law field and answering a few pre-screening questions. Try Avvo.com by clicking on "Trusts and Estates" for areas of practice and the state in which you live.

Create passive trust documents with online tools and resources

Because a passive trust can be either an irrevocable living trust or a revocable living trust, they are relatively easy to produce with the right online tools and forms. Do it yourself trusts are a great resource when time is an issue and a trip to the attorneys office isn't possible.

I recommend: Select a "Revocable One-Party Living Trust" or a "Revocable Two-Party Living Trust" from Legalforms.name for do it yourself trust documents. Choose the "Declaration and Revocation of Trust" package from Legal and Business Forms to create a passive trust.

Work with a passive trust expert to determine if a passive trust is right for you

During life's most difficult moments, getting the right answers before you need them is priceless. Passive trust management can be confusing without the right expert services on your side. Choosing a qualified trust and estate attorney takes the worry out of making the right choices for your particular situation.

I recommend: Anderson Kill & Olick in both New York and Washington and the international law firm of Arnold & Porter have large estate planning and trust divisions to meet all your trust planning needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Any type of trust requires a higher level of capacity than that of 'sound mind' applicable to wills. The required capacity is similar to contractual capacity such as that needed to sign a deed.
• •  Notarize any type of trust, including a passive trust, in case it needs recording with the Register of Deeds.