Which of the following is NOT a feature of a living trust?

The statement that a living trust takes effect when the trustor dies is not accurate as a defining feature of a living trust. In fact, a living trust is designed to be operational during the grantor's lifetime. It is revocable, meaning the trustor can change the terms, add or remove assets, or even dissolve the trust entirely while they are still alive.

The essential purpose of a living trust is to manage the assets of the grantor during their life and to allow for a seamless transition of those assets to beneficiaries upon the grantor's death, which avoids probate. Therefore, the trust becomes effective immediately upon its creation, not just at the time of the trustor's death.

This characteristic distinguishes it from other types of trusts, such as a testamentary trust, which only comes into effect after the death of the testator. Thus, the identification of option B as not a feature of a living trust is precisely aligned with understanding how living trusts function in estate planning.