114) As noted above, an important advantage to inter vivos trusts
is that they can be funded during life and used to administer, invest, and distribute assets during and even after a settlor loses capacity.
Sieh, decedent husband created an inter vivos trust
prior to his marriage, retaining the power to revoke the trust.
The new law, says Lisle lawyer Neil Goltermann of Momkus McCluskey LLC, who assisted in drafting the legislation, means married couples will no longer have to forego the protections of holding property as tenants by the entirety to set up and fund inter vivos trusts
recommended for their estate plans.
During the grantor's lifetime, income produced by any of the assets transferred to a revocable inter vivos trust
will be taxed to the grantor since no irrevocable gift had been made and the grantor remained the owner of trust assets and income for both estate and income tax purposes.
Any remainderman who wishes to avoid subjecting the remainder to probate expenses can transfer the remainder, like other property, into a revocable inter vivos trust
2003) ("With the increase in the use of revocable inter vivos trusts
as will substitutes, no-contest clauses .
Do total discretionary inter vivos trusts
that include Crummey powers qualify for automatic allocation of GST exemption?
However, a distinction exists for inter vivos trusts
32) It continues by stating: "nevertheless, a revocable inter vivos trust
is ordinarily subject to substantive restrictions on testation(33) and to rules of construction(34) and other rules(35) applicable to testamentary dispositions, and in other respects the property of such a trust is ordinarily treated as if it were owned by the settlor.
8843004, the decedent bequeathed his entire estate to an existing inter vivos trust
83 (1929), the Court held that a Virginia tax on the value of an inter vivos trust
, which had Virginia beneficiaries but a Maryland trustee, violated the Due Process Clause of the U.
An inter vivos trust
is one which is funded and administered during the lifetime of the settlor/grantor.