Also known as: inter-vivos trust · living trust
Written by attorneys · grounded in primary & secondary sources — see below
A trust created during the settlor's lifetime that holds and manages property for designated beneficiaries. The trust exists and operates independently of the settlor's will or probate proceedings.
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Isaac Irving executed a will that directed his brokerage account to the trustee of a trust he had created years earlier with Integrity Partners. The trust had been executed during his life but held no assets at death. The will provision transferred the account into the trust for distribution according to its terms.
Ian Iverson created an inter vivos trust holding movables located in multiple states. When a dispute arose over administration, the court evaluated contacts with each state under the most significant relationship test to decide which local law governed the trust terms.
Israel Irving served as both settlor and trustee of an inter vivos trust he funded with securities. After his death the executor argued the corpus should not be included in the estate because the retained powers were limited. The court examined the powers to determine tax consequences.
Iain Irons transferred most of his assets into a revocable inter vivos trust naming himself as sole beneficiary during life. After his death his surviving spouse claimed an elective share. The court included the trust assets in the augmented estate for calculating the share.
Idris Ives executed trust instruments retaining broad powers to amend and revoke while naming himself income beneficiary. After his death the beneficiaries argued the arrangement was merely testamentary. The court assessed whether the retained controls rendered the trust invalid.
Ismael Ibrahim placed assets in an inter vivos trust. After his death a dispute arose in bankruptcy proceedings concerning claims against the trust property. The court determined whether it had authority to adjudicate the trust-related issues.
An inter vivos trust is created and takes effect during the settlor's lifetime. A testamentary trust is created by a will and arises only after death.
Yes. Assets properly transferred to an inter vivos trust during life pass directly to beneficiaries under the trust terms without entering the probate estate.
In many jurisdictions the value of assets in a revocable inter vivos trust over which the decedent retained control is included in the augmented estate for calculating the elective share.
…Pierce Marshall (Pierce), one of J. Howard’s sons, was the ultimate beneficiary of J. Howard’s estate plan, which consisted of a living trust and a “pourover” will. Under the terms of the will, all of J. Howard’s assets not already included in the trust were to be transferred to the trust upon his death. Competing claims…