What is an inter vivos trust?

An inter vivos trust is a trust that is established while the settlor (the person establishing the trust) is still alive. This type of trust is different from a testamentary trust, which is established in a will and is only effective upon the death of the settlor. Inter vivos trusts are usually set up when someone wants to manage the distribution of their assets during their lifetime. The settlor would transfer assets (cash, stocks, real estate, etc.) to the trust and name a trustee to manage the trust. The trustee is responsible for managing the trust and abiding by the terms of the trust document. The settlor can also designate themselves as a trustee and may appoint a successor trustee to manage the trust after their death. The settlor is also able to determine who will benefit from the trust. They can name one beneficiary or several, or they can choose to benefit multiple generations. Inter vivos trusts are popular in Maryland, as they are a great way to manage and distribute assets during the settlor’s lifetime and provide a way to pass on their assets to the beneficiaries in a tax-efficient manner after their death.

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What is an inter vivos trust?

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