What is an inter vivos trust?
An inter vivos trust is a type of trust established in California that allows individuals to pass assets to their heirs without going through the probate process. This type of trust is also referred to as a living trust, because it is established while the creator of the trust is still alive. Inter vivos trusts are created for the purpose of avoiding expensive costs and time delays associated with probate. Instead, the assets of the trust are immediately passed to the designated beneficiaries upon the death of the trust creator. The trust itself is managed by a trustee, who is appointed by the trust creator to handle the assets within the trust. Furthermore, inter vivos trusts can help protect assets from creditors and reduce taxes. This is because the trust is not directly owned by the trust-creator. As a result, the assets within the trust are not considered part of the estate, and creditors cannot use the trust-assets to satisfy debts. Additionally, the trust can be used to minimize the taxes owed by the beneficiaries upon the death of the trust-creator. In summary, an inter vivos trust is a legally binding agreement established by an individual in California to transfer assets to designated beneficiaries without going through the probate process. This type of trust also provides protections against creditors and can help minimize taxes.
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