--- title: What is an Inter-Vivos Trust? description: An inter-vivos trust is a type of trust created during the life of the grantor, or the person who establishes the trust, as opposed to a trust created through a will after the grantor’s death. image: https://www.realized1031.com/hubfs/Images/Blog/advisor-consultation-older-couple-is1339197505.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What is an Inter-Vivos Trust? Posted Mar 18, 2023 ![advisor-consultation-older-couple-is1339197505](https://www.realized1031.com/hs-fs/hubfs/Images/Blog/advisor-consultation-older-couple-is1339197505.jpg?width=750&height=500&name=advisor-consultation-older-couple-is1339197505.jpg) An inter-vivos trust is a type of trust created during the life of the [grantor](https://www.realized1031.com/glossary/grantor), or the person who establishes the trust, as opposed to a trust created through a will after the grantor’s death. It is also sometimes called a [living trust](https://www.realized1031.com/blog/what-is-a-living-trust). The term inter-vivos is derived from the Latin for “between the living,” and refers to the fact that the trust is established while the grantor is alive. In this type of trust, the grantor transfers property or assets to the trust. A [trustee ](https://www.realized1031.com/blog/can-a-trustee-also-be-a-beneficiary)manages the trust for the benefit of the beneficiaries named.  ### What are the possible benefits of an inter-vivos trust?  Inter-vivos trusts are common in estate planning. One of the main advantages is that it allows the grantor to avoid [probate](https://www.realized1031.com/glossary/probate-court), the legal process of distributing assets after someone dies. By transferring assets to a trust, the assets are owned by the trust, not the grantor. If the assets don’t go through probate, they can be distributed to beneficiaries quickly and without court involvement.  Additional benefits of an inter-vivos trust include:  - The possibility of limiting the impact of estate taxes on beneficiaries.  - Holding assets for children or dependents until they reach a certain age or a named event occurs.  - Provides privacy, as the trust agreement is not a public document like a will that goes through probate. - Provides post-death disposition directives similar to a will.  ### What are the possible drawbacks to an inter-vivos trust?  While there are several possible benefits, there are also potential drawbacks to an inter-vivos trust. First, it can be more expensive to create a trust than a will, and it might have more ongoing expenses like trustee or legal fees. The trust can also be more complex than other estate planning documents, and usually requires the assistance of an attorney or estate planning professional.  An inter-vivos trust can also face funding challenges. The trust must be properly funded to be effective. If the grantor fails to transfer all relevant assets into the trust, the assets may still be subject to probate. There is also the possibility for lack of control or flexibility for the grantor once the trust is created. Depending on the terms of the trust, the grantor may have limited control over the assets in the trust. For example, if the grantor creates an [irrevocable trust,](https://www.realized1031.com/glossary/trust-irrevocable) they may not be able to change the terms of the trust or access the assets in the trust. Once assets are placed in a trust, they are subject to the terms established. This lack of flexibility can be a disadvantage if the grantor's circumstances or priorities change. ### What are the types of inter-vivos trusts?  Inter-vivos trusts can be [revocable ](https://www.realized1031.com/blog/what-is-a-revocable-living-trust-and-how-does-it-work)or irrevocable. A revocable trust can be changed or revoked by the grantor during their lifetime, while an irrevocable trust cannot be changed or revoked without the permission of the beneficiaries. The choice between a revocable or irrevocable trust will depend on the grantor's goals and circumstances. The specific features of an inter-vivos trust will depend on the individual circumstances of the grantor and their goals for the trust. It is best to consult with an estate planning professional or attorney for guidance. This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. 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The term inter-vivos is derived from the Latin for “between the living,” and refers to the fact that the trust is established while the grantor is alive. In this type of trust, the grantor transfers property or assets to the trust. A trustee manages the trust for the benefit of the beneficiaries named. What are the possible benefits of an inter-vivos trust? Inter-vivos trusts are common in estate planning. One of the main advantages is that it allows the grantor to avoid probate, the legal process of distributing assets after someone dies. By transferring assets to a trust, the assets are owned by the trust, not the grantor. If the assets don’t go through probate, they can be distributed to beneficiaries quickly and without court involvement. Additional benefits of an inter-vivos trust include: The possibility of limiting the impact of estate taxes on beneficiaries. Holding assets for children or dependents until they reach a certain age or a named event occurs. Provides privacy, as the trust agreement is not a public document like a will that goes through probate. Provides post-death disposition directives similar to a will. What are the possible drawbacks to an inter-vivos trust? While there are several possible benefits, there are also potential drawbacks to an inter-vivos trust. First, it can be more expensive to create a trust than a will, and it might have more ongoing expenses like trustee or legal fees. The trust can also be more complex than other estate planning documents, and usually requires the assistance of an attorney or estate planning professional. An inter-vivos trust can also face funding challenges. The trust must be properly funded to be effective. If the grantor fails to transfer all relevant assets into the trust, the assets may still be subject to probate. There is also the possibility for lack of control or flexibility for the grantor once the trust is created. Depending on the terms of the trust, the grantor may have limited control over the assets in the trust. For example, if the grantor creates an irrevocable trust, they may not be able to change the terms of the trust or access the assets in the trust. Once assets are placed in a trust, they are subject to the terms established. This lack of flexibility can be a disadvantage if the grantor's circumstances or priorities change. What are the types of inter-vivos trusts? Inter-vivos trusts can be revocable or irrevocable. A revocable trust can be changed or revoked by the grantor during their lifetime, while an irrevocable trust cannot be changed or revoked without the permission of the beneficiaries. The choice between a revocable or irrevocable trust will depend on the grantor's goals and circumstances. The specific features of an inter-vivos trust will depend on the individual circumstances of the grantor and their goals for the trust. 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