Benefits that stem specifically from the management aspects of inter vivos trusts
provide additional reasons for the popularity of these planning devices.
Thus, a revocable inter vivos trust
generally will not be given effect to the extent the settlor is prohibited from disposing of similar property for a similar purpose by will.
A Grantor Retained Income Trust ("GRIT"), a Grantor Retained Annuity Trust ("GRAT"), and a Grantor Retained Unitrust ("GRUT") are closely related irrevocable inter vivos trust
instruments that perform in significantly similar ways but with some distinct differences.
Some of these issues could be dealt with if each spouse created an inter vivos trust
for the benefit of the other spouse.
"If the statute says that a husband and wife can have tenancy by the entirety protection through a land trust where they don't own legal title but only a beneficial interest, the same thing can happen through an inter vivos trust
." Goltermann is currently seeking input from other practitioners on appropriate wording for transfer deeds.
Where liquid assets may be insufficient to pay death costs and administration expenses, a useful provision in the inter vivos trust
is to permit the trustee to make cash available to the estate executor through loans or the purchase of estate assets.
at 752 (court upheld bank account in beneficiary's name as a valid revocable inter vivos trust
); Carey, 603 P.2d at 868 (extremely legally complex drafted gift).
Irrevocable inter vivos trusts
, testamentary trusts, and revocable trusts that continue as irrevocable trusts after the settlor's death are not will substitutes, and the substantive law of wills cannot be applied to them on the theory that they are functionally analogous transfers.
with respect to the administration of the trust properties." (163) The settlor, who had created and funded two inter vivos trusts
of $10 million apiece, explained in the trust instruments that he was including this condition because he had "been kept informed of such administration, and [was] completely satisfied therewith" and "desire[d] ...
In Gavin, the inter vivos trust
's noncontingent beneficiary was a resident of the state, marking a slight distinction from the cases cited above.
The gift and GST consequences of including Crummey powers with total discretionary intervivos trusts are similar but not identical to the consequences when a Crummey power is included in the typical irrevocable inter vivos trust
(i.e, a support type trust).
Most of Fox's clients opt for the charitable lead trust and its derivatives: the charitable lead annuity trust, charitable lead unitrust, testamentary trust and inter vivos trust
. All of these CLTs are irrevocable trusts in which a charity receives distributions from the trust for a period of time, after which the balance of the trust principal is paid to non-charitable beneficiaries.