There are two types of Trusts:

Inter Vivos Trust (Living Trust)

An “inter vivos trust” is created during the lifetime of a person by way of an agreement (contract) between the founder and the trustee(s).

An inter vivos trust can be used to limit estate duty liability, bolster succession planning, or to protect certain assets from creditors. An inter vivos trust is a trust that is set up during the founder’s lifetime to achieve specific estate planning and asset protection purposes.

Testamentary Trust

A Testamentary Trust can be established in your will in order to hold and administer assets on behalf of a beneficiary.

Whether it makes sense to set up a Trust fund depends on the beneficiary’s circumstances and the value of the assets.

Some reasons for setting up a Testamentary Trust include:

  • To provide for maintenance obligations.
  • To ensure that minors’ inheritances are invested until a certain age (age of majority is 18).
  • To administer assets on behalf of immature/handicapped beneficiaries during their lifetime.