What is the trust type established during the life of the settlor and between living people?

What is the trust type established during the life of the settlor and between living people?

• A. Testamentary
• B. Inter-vivos
• C. Charitable
• D. Irrevocable

Answer: (B)

A trust formed during the settlor’s life and between living people is called an inter vivos or living trust. This type is created while the settlor is alive and governs relationships among the living, often funded and managed during the settlor’s lifetime. It’s distinct from a testamentary trust, which comes into being only after the settlor dies through a will. Charitable trusts are defined by their purpose rather than when they’re created. Irrevocable describes whether the trust can be altered or revoked, not the timing of its creation, so it isn’t the defining feature in this context.

A trust formed during the settlor’s life and between living people is called an inter vivos or living trust. This type is created while the settlor is alive and governs relationships among the living, often funded and managed during the settlor’s lifetime. It’s distinct from a testamentary trust, which comes into being only after the settlor dies through a will. Charitable trusts are defined by their purpose rather than when they’re created. Irrevocable describes whether the trust can be altered or revoked, not the timing of its creation, so it isn’t the defining feature in this context.