An inter vivos trust, also commonly referred to as a living trust, is a legal arrangement established during the lifetime of an individual to manage and distribute their assets or property, aiming to avoid probate and ensure a smooth transition of assets to beneficiaries upon the grantor's death. This type of trust serves as an efficient and flexible estate planning tool, granting control and flexibility to the grantor over their assets while benefiting their loved ones.
The inter vivos trust is created by the grantor, who transfers property or assets into the trust, designating themselves as the initial trustee and beneficiary. The grantor has the power to make changes, revisions, or even revoke the trust during their lifetime, providing a high degree of flexibility. Typically, this type of trust includes detailed instructions to be followed upon the death or incapacitation of the grantor, ensuring the proper management and distribution of assets to named beneficiaries or heirs.
One of the key advantages of an inter vivos trust is its ability to bypass the probate process, which can be time-consuming, costly, and subject to public record. By transferring assets into the trust, they no longer form part of the grantor's estate, thereby avoiding probate. Additionally, inter vivos trusts offer privacy, as they are generally not publicly disclosed, allowing the grantor to maintain confidentiality regarding their assets and beneficiaries.
Overall, an inter vivos trust offers a valuable mechanism for individuals to maintain control and efficiently distribute their assets while minimizing potential obstacles and expenses associated with probate.
