What is an Inter Vivos Trust?

An inter vivos trust is also commonly referred to as a living trust.  This type of trust begins during the life of the grantor, or the person who is setting up the trust for his or her named beneficiaries.  Transferring all of the grantor’s assets into the trust prior to his or her death can result in avoiding the probate process altogether, which can help to both preserve the grantor’s assets and ensure that the beneficiaries receive the grantor’s assets in a more timely manner.  Often, the entire purpose behind choosing to create an inter vivos trust is specifically to exclude the grantor’s assets from probate, which can be a costly, time-consuming, and lengthy process. 

Types of Inter Vivos Trusts

There are two major types of inter vivos trusts – revocable and irrevocable.  First, a revocable inter vivos trust can be changed at any point and any number of times by the grantor.  However, a revocable inter vivos trust typically becomes irrevocable at the death of the grantor, a fact which prevents any other person acting on the deceased grantor’s behalf from changing the terms of the trust document.  The other major type of inter vivos trust is an irrevocable inter vivos trust.  When a grantor creates this sort of trust, it is permanent, in that he or she has no longer has the power to change any provisions of the trust or even revoke the trust.  Both revocable inter vivos trusts and irrevocable inter vivos trusts can help avoid probate; since the trust legally owns all of the grantor’s assets, and the trust lives beyond the death of the grantor, then the grantor’s assets generally need not go through probate.

Legal Help with an Inter Vivos Trust

As trust documents can be extremely complex, you should take care to consult an estate planning lawyer regarding the terms and provisions that you may want to include in your trust.  Plus, an experienced attorney can help guide you through the trust drafting process, and give you advice about potential pitfalls and tax consequences that might occur in the trust that you are proposing.