An inter vivos trust agreement is a legal document that allows an individual (known as the trustor or grantor) to transfer their assets into a trust during their lifetime, with the intention of distributing those assets to beneficiaries after their death. This type of trust is also known as a living trust or a revocable trust.
There are several reasons why someone might choose to create an inter vivos trust agreement. One primary advantage is that it can help the trustor avoid the lengthy and costly probate process that typically occurs after someone`s death. With an inter vivos trust agreement, the assets in the trust are distributed to beneficiaries according to the terms of the trust, without needing to go through probate.
Another advantage of an inter vivos trust agreement is that it can help the trustor retain more control over their assets during their lifetime. With a revocable inter vivos trust, for example, the trustor can change or cancel the trust at any time. This can be especially advantageous for people who want to maintain flexibility in their estate planning, as they can make changes to the trust as their circumstances change.
In addition to providing control and flexibility, an inter vivos trust agreement can also provide privacy. Unlike a will, which becomes a matter of public record after someone`s death, a trust is usually a private document. This means that the trustor`s assets and beneficiaries can remain confidential, if desired.
It`s important to note that while an inter vivos trust agreement can be a useful estate planning tool, it`s not right for everyone. Trusts can be complex legal documents, and creating one typically involves working with an experienced attorney. Additionally, the cost of creating and managing a trust can be higher than other estate planning options.
Overall, an inter vivos trust agreement is a legal document that allows someone to transfer assets into a trust during their lifetime, with the intention of distributing those assets to beneficiaries after their death. It can provide benefits such as avoiding probate, retaining control and flexibility, and maintaining privacy. However, it`s important to carefully consider the costs and potential drawbacks before deciding if an inter vivos trust agreement is the right choice for your estate planning needs.