Inter-Vivos Trust

What is an 'Inter-Vivos Trust'

An inter-vivos trust is a fiduciary relationship used in estate planning that is created during the lifetime of the trustor. Also known as a living trust, this trust has a duration that is deemed at the trust's creation and can entail the distribution of assets to the beneficiary during or after the trustor's lifetime. The opposite of an inter-vivos trust is a testamentary trust, which goes into effect upon the death of the trustor.

BREAKING DOWN 'Inter-Vivos Trust'

One important reason for establishing a trust is to avoid probate, a process of distributing the deceased's assets in court. This process can be lengthy, costly and can also expose a family's private financial matters by making them a matter of public record. A properly established trust helps ensure that assets go to their intended recipients in a timely and private matter.

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RELATED FAQS
  1. What is the difference between an intervivos trust and a testamentary trust?

    Understand the differences between a testamentary trust and an inter-vivos (living) trust, and learn why each is important ... Read Answer >>
  2. What percentage of withdrawals from a trust fund is taxed?

    I have inherited a trust fund. This is the first time I have considered pulling money from the account.  ... Read Answer >>
  3. What is the difference between revocable and irrevocable intervivos trusts?

    Learn what an inter-vivos trust is, the difference between an irrevocable and a revocable inter-vivos trust, and why it is ... Read Answer >>
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    My inheritance is in the form of a trust fund that distributes $25,000 per year for 10 years. ... Read Answer >>
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