Which type of trust can a grantor create during their lifetime?

The inter vivos trust is a type of trust that a grantor can create during their lifetime. This form of trust comes into existence while the grantor is still living, allowing them to transfer assets into the trust and manage those assets for the benefit of the beneficiaries. The grantor typically has control over the assets and can make changes to the trust terms, which offers flexibility.

Creating an inter vivos trust has strategic benefits, such as potentially avoiding probate upon the grantor's death, and it can also provide immediate benefits to the beneficiaries. Because it is established during the grantor's lifetime, it allows for the proactive management of assets and planning for estate purposes while the grantor is still able to make decisions.

In contrast, a testamentary trust is established upon the death of the grantor and is outlined in their will, meaning it cannot be created until after the grantor's lifetime. An irrevocable trust is one that cannot be altered or terminated by the grantor once it is established, which can be created during a person's life but often involves transferring assets out of their control. A charitable trust can also be created during a lifetime but primarily focuses on donating assets to charitable purposes, which limits its context when discussing the trust's creation for personal benefit