What type of trust is known as "inter vivos"?

The term "inter vivos" refers to a type of trust that is established during the lifetime of the settlor, which is the person creating the trust. This type of trust is designed to take effect immediately and can be used for various purposes, such as asset management or estate planning. By creating an inter vivos trust, the settlor can manage assets during their lifetime while also determining how those assets should be distributed upon their death.

This distinguishes inter vivos trusts from other types of trusts, such as testamentary trusts, which are established through a will and take effect only after the settlor has passed away. The focus on lifetime creation allows for flexibility, as the settlor can modify the terms of the trust as their circumstances change. Additionally, inter vivos trusts can help avoid probate, streamline asset distribution, and provide for beneficiaries in a controlled manner.

Other options describe types of trusts that either do not align with the definition of "inter vivos" or are not applicable in this context. For instance, trusts that require court approval or are limited to certain jurisdictions are not inherently linked to the concept of being created during the settlor's lifetime. Thus, the correct identification of inter vivos as a trust created during the lifetime of the settlor highlights its unique characteristics