Inter Vivos Living Trust With Trust
Description
How to fill out Charitable Remainder Inter Vivos Unitrust Agreement?
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FAQ
This is often referred to as ?rolling? the property out of the trust to the beneficiaries at the tax cost. Inter vivos trusts and most testamentary trusts pay tax at the top personal marginal tax rate; however, there are exceptions.
A living trust (sometimes called an inter vivos trust) is one created by the grantor during his or her lifetime, while a testamentary trust is a trust created by the grantor's will.
One example to help you imagine how an Inter Vivos Trust can be used is a college education fund. Let's say you have two young children, and you and your spouse became motivated to establish an estate plan. You set up two Trusts and name your children as the beneficiaries, one Trust per child.
The intervivos trust may be either revocable or irrevocable, and either funded or unfunded. An intervivos trust is often referred to as a ?living trust?. The creation and administration of the intervivos trust occurs outside the general supervision of the Probate Court.
In establishing a trust, the grantor names the trust parties, which include the grantors, typically the spouse; the beneficiaries; and the trustee. Sometimes, the spouses are named as trustees. However, a contingent trustee should be named in the event both spouses die.