Which term refers to a trust created during the grantor's lifetime?

Which term refers to a trust created during the grantor's lifetime?

• A. Inter vivos or living trust
• B. Revocable trust
• C. Irrevocable trust
• D. Declaration of trust

Answer: (A)

The timing of trust creation is what this item tests. An inter vivos trust, also called a living trust, is created during the grantor's lifetime. The phrase “inter vivos” is Latin for “between the living,” distinguishing a trust set up while the grantor is alive from a trust that takes effect only after death (a testamentary trust). The other terms describe different aspects: whether the trust is revocable or irrevocable, or the instrument used to declare the trust, but they don’t specify when it was created. So the term that refers to a trust created during the grantor’s lifetime is inter vivos or living trust.

The timing of trust creation is what this item tests. An inter vivos trust, also called a living trust, is created during the grantor's lifetime. The phrase “inter vivos” is Latin for “between the living,” distinguishing a trust set up while the grantor is alive from a trust that takes effect only after death (a testamentary trust). The other terms describe different aspects: whether the trust is revocable or irrevocable, or the instrument used to declare the trust, but they don’t specify when it was created. So the term that refers to a trust created during the grantor’s lifetime is inter vivos or living trust.