The Living Wood Chest is a naturally-occurring storage item that can only be found in the underground vertical shafts of Giant Trees. Living Wood Chests often (if not always) contain either a Living Wood Wand, a Leaf Wand, or a Living Loom .
Living Wood Chests can only be found in worlds created after the 1.2 update.
Living Wood Chests are identical to all other chests in everything but appearance.
A Living Wood Chest found in the vertical shaft of a Giant Tree