What is an inter vivos trust?

An inter vivos trust is a type of trust that is created while the creator, known as the settlor, is still alive. This type of trust is frequently used in asset protection law in New York. In an inter vivos trust, the settlor transfers their assets to the trust. The trust then has a trustee, who is in charge of managing the trust and handling the assets according to the wishes of the settlor. The trust can also have beneficiaries, who can receive income and principal from the trust. One advantage of setting up an inter vivos trust is that it can protect assets from creditors. If the assets are transferred to the trust before a debt arises, they are usually safe from creditors. Furthermore, the trust is often seen as a separate entity, meaning that the settlor has control over the assets, but they are not legally responsible for them. Another advantage of inter vivos trusts is that they can be used to reduce tax liabilities. Since the trust is often seen as a separate legal entity, the income and gains within it are taxed differently than if they were owned by the settlor directly. This allows you to take advantage of lower tax rates and limit the amount of taxes you need to pay. In summary, an inter vivos trust is a type of trust set up while the settlor is still alive. It is used in asset protection law in New York and can protect assets from creditors, as well as help reduce tax liabilities.

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What is an inter vivos trust?

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