What is an inter vivos trust?

An inter vivos trust, also known as a living trust or revocable trust, is a legal arrangement in which an individual transfers their assets into a trust during their lifetime. The individual who sets up the trust is known as the grantor or settlor, while the person appointed to manage the trust is known as the trustee.

Inter vivos trusts are typically used as an estate planning tool to avoid probate, reduce estate taxes, provide for minor or disabled beneficiaries, and protect assets from creditors. The trust can also be used to control how and when assets are distributed to beneficiaries after the grantor's death.

One of the key benefits of an inter vivos trust is that it is revocable during the grantor's lifetime, which means that they can modify or terminate the trust at any time. This flexibility makes it an attractive option for individuals who want to maintain control over their assets while ensuring that they are managed and distributed according to their wishes.

Additionally, inter vivos trusts are private documents and do not become part of the public record, unlike wills which must go through probate court. This provides an added layer of privacy and can help avoid disputes among family members.

Overall, an inter vivos trust can be a useful tool in estate planning for individuals who want to protect their assets and ensure that their wishes are carried out after their death.