What is an Inter Vivos Trust?

An Inter Vivos Trust is indeed a trust that is created during the lifetime of the settlor, the individual who establishes the trust. This type of trust allows the settlor to place their assets into the trust while they are still alive, and it can benefit one or more named beneficiaries during the settlor's lifetime or beyond.

Having an Inter Vivos Trust can provide several advantages, such as avoiding probate, providing for the management of assets if the settlor becomes incapacitated, or facilitating a smoother transition of assets to beneficiaries without the delays often associated with the probate process after death. The settlor retains control over the trust and can dictate the terms under which the assets are managed and distributed.

This understanding clearly differentiates an Inter Vivos Trust from other options provided in the question. For instance, a trust established upon an individual's death refers to a testamentary trust, which is created through a will and activates only after the death of the testator. Similarly, a will that divides assets after death signifies a legal document intended to outline how assets should be distributed upon passing, rather than a living trust. Lastly, a temporary allocation of estate assets does not accurately reflect the nature of an Inter Vivos Trust, as it is not usually structured for