Also known as: inter vivos trust · living trust · living trusts
Written by attorneys · grounded in primary & secondary sources — see below
A trust created during the lifetime of the settlor by transferring property to a trustee for the benefit of designated beneficiaries. The arrangement takes effect immediately upon transfer and operates outside probate upon the settlor's death.
Iain Irons executes a will directing his brokerage securities to the trustee of a scholarship fund whose terms appear in a donor agreement he signed years earlier. The agreement was never funded during Iain's life. After Iain's death the probate court validates the devise because the will adds property to a trust whose terms were fixed in a lifetime instrument.
Igor Ito, domiciled in State A, creates an inter vivos trust holding movables and directs that administration occur in State B where the trustee resides. When a dispute arises over investment powers, the court applies the local law of State B because that state has the most significant relationship to the trust administration and the parties.
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Ike Ingram signs revocable declarations of trust for mutual-fund shares and delivers the certificates to the company. The shares remain in Ike's name as trustee for his nephew. After Ike's death the court upholds the arrangement as a valid inter vivos trust rather than an invalid testamentary disposition.
Isabella Ingram funds an inter vivos trust and serves as trustee with broad powers to invade principal. Upon Isabella's death the estate tax return includes the corpus because her retained powers caused the assets to remain within her taxable estate.
Isaac Irving transfers real property into a revocable inter vivos trust naming himself as trustee and his daughter as remainder beneficiary. After Isaac's death the property passes directly to the daughter under the trust terms without probate proceedings.
Ivy Ibarra creates a revocable inter vivos trust holding substantial assets and names her son as trustee. After Ivy's death a probate contest arises over the trust's validity. The federal court dismisses the action because the dispute concerns trust administration rather than a decedent's estate.
Yes. Property properly transferred to an inter vivos trust during the settlor's life passes according to the trust terms and does not enter the probate estate.
An inter vivos trust holding personal property need not be in writing under the common law. A trust holding real property requires a writing under the Statute of Frauds.
Yes. Under governing marital-property statutes, property acquired during marriage remains marital even after transfer to a revocable living trust for estate-planning purposes.
A pour-over devise adds property by will to an inter vivos trust or funds an unfunded trust whose terms appear in a lifetime instrument. The devise may be validated by statute, incorporation by reference, or independent significance.
…statute says concerning the need for a trust corpus. This court was one of the first courts to validate pour-over devises to a living trust. In Second Bank-State St. Trust Co. v. Pinion , 341 Mass. 366, 371 (1960), decided prior to the adoption of G. L. c. 203, § 3B, we upheld a testamentary gift to a revocable and amendable…