There are multiple kinds of trusts or wills for a person to consider when wanting to transfer their property from their estate to another's in a way that can be legally protected and verified.
While many wills only involve a transfer after the death of an individual, also known as a grantor, trusts offer more opportunities for the living.
Also, there are major differences between the ways in which certain wills and trusts function, which may place addition burdens on the parties involved.
An inter vivos trust is a specific type of trust that allows for the movement of property or business holdings without the death of the grantor.
Inter vivos trusts, from the Latin phrase meaning "between the living," are specifically set up to facilitate a changing of ownership for properties and businesses for living people.
Most legal agreements do not occur in such a way, which also means that some of these agreements include stipulations in the event of the grantor's death.
In this way, these agreements can go into effect significantly earlier than most wills.
In addition to the previously mentioned benefits, inter vivos trusts also act differently in a legal sense.
These agreements do not require intervention from probate courts, meaning that related fees are avoidable.
As well as a lack of fees, not being subject to probate court proceedings can also give privacy to inter vivos trusts and their involved parties.
The downside of an inter vivos trust agreement comes in its expenses.
While one may not pay for probate costs, the legal fees associated with these trusts are immediately paid.
This can mean that these trusts can be more expensive to establish.
If you want to learn more about how these trusts can be set up and how they function legally, contact an estate planning attorney.