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.

RELATED TERMS
  1. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  2. Qualified Personal Residence Trust ...

    A specific type of trust that allows its creator to remove a ...
  3. Living Trust

    A property interest created during a person's life that allows ...
  4. Voluntary Trust

    A type of living trust that is created during the lifetime of ...
  5. Gift

    Property, money or assets that one person transfers to another ...
  6. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
Related Articles
  1. Insurance

    Here's How To Care For Your Pet (Financially) After You're Dead

    Find out how to protect and provide for your pet after you pass away.
  2. Retirement

    Pick The Perfect Trust

    Trusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.
  3. Retirement

    Why Keep Medical & Financial Powers of Attorney Separate?

    Representing your interests in financial matters is a very different job from communicating and advocating for your wishes with doctors.
  4. Retirement

    Why Designate a General Power of Attorney?

    Because it will ensure your financial and personal affairs are handled according to your wishes should you ever be incapacitated or unavailable.
  5. Retirement

    Medical Power of Attorney: Which Child to Choose?

    Don’t compromise for the sake of family harmony when you pick an adult child to fill this role. But be sure you fully explain your decision to all.
  6. Retirement

    How Advisors Can Help Surviving Spouses

    When someone dies, it's natural for a surviving spouse to grieve. But with a little planning, fear of an unknown financial future can be avoided.
  7. Economics

    What Does Pari-Passu Mean?

    Pari-passu is a Latin phrase that means, “equal footing.”
  8. Retirement

    Which Child's Best for Monetary Power of Attorney?

    Don’t make the mistake of trying to appear “fair” or avoid hurt feelings. Trustworthiness and ability are the factors to consider.
  9. Tax Strategy

    Married with Money? Avoid These Costly Mistakes

    High net worth couples face more complex challenges than others when managing wealth. Try to avoid these easy-to-make errors.
  10. Investing

    7 Issues to Consider When Determining Life Insurance Coverage

    Seven issues to consider when buying life insurance to ensure the coverage is tailored to meet your personal financial situation.
RELATED FAQS
  1. How is maintenance of standard of living for survivors accomplished in estate planning?

    Understand what elements of an estate plan can assist in creating certainty for survivors that allows them to maintain their ... Read Answer >>
  2. 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 >>
  3. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
  4. Can a spouse who is not named as a beneficiary receive assets from an IRA?

    It depends.Generally speaking, the designation of beneficiary form dictates who receives the assets from the individual retirement ... Read Answer >>
  5. How do my siblings and I receive inherited pension benefit payments from our deceased ...

    Generally, the provisions of the plan document determine the distribution options available to beneficiaries of retirement ... Read Answer >>
  6. What is the average cost of a making a will?

    Learn about the costs of establishing a legally enforceable will, and discover the differences between hiring a lawyer for ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center