See: Living Trust.
You’re getting older. Like...you're having trouble remembering your kids’ names. Pretty soon, those anonymous people claiming to be your children will be shipping you off to the nursing home. You're worried that, eventually, the old-age facility will force you to start selling assets in order to pay for your ongoing care and medical treatment. But you want to preserve those assets to pass onto your heirs (whatever their names are).
Or, through another lens, it works like this: you put your assets into the IIOT. Now those assets are owned by the trust. No one can touch them. Not even you...that’s the irrevocable part. Once you put the assets in, you can’t get them back.
However, you still get income generated by the assets. You get income checks from the trust (to pay what nursing you can). But if you run short of funds, no one can force you to sell the assets in the trust to raise money. You don't technically own them anymore.
Then, when you eventually shuffle off this mortal coil, the whatever-their-names-are who are named your beneficiaries can inherit the items in the trust.
Related or Semi-related Video
Finance: What is Inter Vivos?4 Views
Finance a la shmoop what is inter vivos? inter between vivos part of an Elvis [Dictionary book flicks through pages]
Presley song okay remember Viva Las Vegas all right
no vivos means the living an inter vivos is a trust like between the living got
it so sorry all you zombies with large [Zombie appears]
inheritances and while you don't qualify well yeah inter vivos really is just
another word for a living trust an estate-planning vehicle that's set up
before the trustor has kicked the bucket so that they can transfer their assets
to trustees without having to you know go through all the probate nonsense
which cost a fortune and chews up all the money that they could have given to [Money transfers from grave to family]
their heirs it all goes to lawyers and the state well in other words in an
inter vivos trust they can keep the courts from getting involved and with an
inter vivos trust it isn't even necessary to wait until the trustor has
a you know gone the way of the dodo before those assets are distributed like [Gravestone of Dodo appears]
they can distribute it before they're dead bequeathed items and/or cash can
also start being divvied out before the trustors lifetime, although a trustee
might want to consider signing some kind of no take-backsies contract [No take-backsies contract appears]
just in case grandpappy start getting trustors remorse
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A regular trust is a legal vehicle into which assets are placed so that it is legally clear who is to receive what. A living trust is a established...