Which term is described as created during the client's lifetime?

Which term is described as created during the client's lifetime?

• A. Fiduciary duty
• B. Inter vivos or living trust
• C. Corpus or principal
• D. Income

Answer: (B)

Inter vivos or living trust is the term that describes a trust created during the client’s lifetime. The phrase “inter vivos” means “between the living,” highlighting that the trust is established while the grantor is still alive, often funded with assets to manage them during life and distribute them after death. This contrasts with a testamentary trust, which is created by a will and comes into existence only upon the grantor’s death. A living trust can be revocable or irrevocable, and its creation timing is what distinguishes it from other terms. Fiduciary duty refers to the duties owed by someone serving as a fiduciary, not when a trust is created. Corpus or principal means the assets placed into the trust, and income refers to the earnings from those assets; neither term indicates creation timing.

Inter vivos or living trust is the term that describes a trust created during the client’s lifetime. The phrase “inter vivos” means “between the living,” highlighting that the trust is established while the grantor is still alive, often funded with assets to manage them during life and distribute them after death. This contrasts with a testamentary trust, which is created by a will and comes into existence only upon the grantor’s death.

A living trust can be revocable or irrevocable, and its creation timing is what distinguishes it from other terms. Fiduciary duty refers to the duties owed by someone serving as a fiduciary, not when a trust is created. Corpus or principal means the assets placed into the trust, and income refers to the earnings from those assets; neither term indicates creation timing.