What is a inter vivos trust?

An inter vivos trust is a legal arrangement in which a person transfers assets to a trustee during their lifetime for the benefit of themselves and/or other beneficiaries. The trust can be revocable or irrevocable, and the assets held in the trust are managed by the trustee until they are distributed to the beneficiaries.

Inter vivos trusts can be used for a variety of reasons, such as estate planning, asset protection, and tax minimization. They can also provide a way to avoid probate and maintain privacy for the beneficiaries.

To create an inter vivos trust, the person creating the trust (the grantor) must transfer assets into the trust, designate a trustee to manage the assets, and name one or more beneficiaries who will receive the assets from the trust. The terms of the trust are set out in a legal document known as a trust agreement.

Overall, inter vivos trusts can be a useful tool for individuals who want to ensure that their assets are managed and distributed according to their wishes while also minimizing taxes and protecting their assets.