Which term describes a trust formed while the grantor is alive?

Which term describes a trust formed while the grantor is alive?

• A. Inter vivos
• B. Grantors
• C. Codified
• D. Statutory law

Answer: (A)

Inter vivos refers to a trust created during the grantor’s lifetime, often called a living trust. This type is formed while the person who creates the trust is alive, as opposed to a testamentary trust, which is created by a will after death. Inter vivos trusts can be revocable, with the grantor retaining control and the ability to alter or revoke the trust, or irrevocable, where control is relinquished. The other terms don’t describe a trust type. A grantor is the person who creates the trust, not a description of the trust itself. Codified and statutory law describe how laws are written and enacted, not the form of a trust.

Inter vivos refers to a trust created during the grantor’s lifetime, often called a living trust. This type is formed while the person who creates the trust is alive, as opposed to a testamentary trust, which is created by a will after death. Inter vivos trusts can be revocable, with the grantor retaining control and the ability to alter or revoke the trust, or irrevocable, where control is relinquished.

The other terms don’t describe a trust type. A grantor is the person who creates the trust, not a description of the trust itself. Codified and statutory law describe how laws are written and enacted, not the form of a trust.