Also known as inter vivos trust, a living trust is a trust that is created and funded during the settlor's lifetime (as opposed to at their death).
Definition from Nolo’s Plain-English Law Dictionary
A trust that is set up during a person's life. Living trusts are a common and excellent way to avoid probate at death, and may also reduce federal estate tax. Also called "inter vivos trust." (See also: revocable living trust, testamentary trust)