If you are getting ready to sit down with your attorney to create an estate plan, one of the trusts you need to have an understanding of is the inter vivos trust. This trust is created by the trustor when putting together the estate plan. An alternate name for this trust is living trust, and it can be active for a specific period based on the wishes of the trustor.
The biggest advantages of creating an inter vivos trust include the following:
- The trustor can act as the trustee of the inter vivos trust for the length of their life or until a backup trustee named in the trust is ready to take the reigns as the trustee.
- An inter vivos trust helps avoid probate when the trustor dies. Since the trust holds the assets of the trustor, these assets will not have to go through probate if the trust is still valid upon death.
- The inter vivos trust is able to hold all of the assets of the trustor, or only those that he or she chooses.
Almost any type of asset can be included in this type of trust. Assets like life insurance policies and retirement accounts do not have to be included in the trust because they will be given to the beneficiaries named on those accounts upon your death.
If you are ready to create your estate plan, consider creating an inter vivos trust as well. This trust brings many benefits with it, all of which you should take advantage of while you can. Don't forget that this trust can be canceled at any point in your life.