What is an inter vivos trust?
An inter vivos trust, or “living trust”, is a legal arrangement used in Hawaii to help people plan for how their property and possessions will be handled, either during their lifetime or after their death. The trust is created while the trust maker is alive, and is managed by a “trustee” who is chosen by the trust maker. The trust maker appoints the trustee to handle all or part of their estate, and the trust maker can decide what to put into the trust, how and when the money will be used, and who will receive it. A trust can be used for many different reasons. Some common reasons include minimizing estate taxes, providing for a family member who is unable to manage their own finances, protecting a family member from creditors or someone who was the victim of a scam, or providing for a disabled family member. A living trust can also be used to direct how assets will be divided among multiple beneficiaries, such as a spouse and children. In Hawaii, the trust maker has to make sure that all applicable state and federal laws are followed when creating the trust. In addition, the trust must be made in writing and properly signed in order to be legally enforceable. The trust should also include a description of the trust property and how its distribution should be handled. Finally, the trust maker should name a trustee and determine how the trustee will be compensated.
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