BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When is a testamentary trust created? The trust comes into existence at the completion of the probate process after the death of the person who has created it for the benefit of his or her children or others; note this differs from “inter vivos” trusts, which are created during the lifetime of the settlor.

Detailed explanation-2: -A “testamentary” or “after-death trust” is created by the settlor’s will which transfers property to the trust. A “living” or “intervivos” trust is created during the lifetime of the grantor when all or part of the grantor’s property is transferred into the trust.

Detailed explanation-3: -Inter vivos / testamentary: A trust created during the settlor’s lifetime is known as an “inter vivos” trust. If a trust is created as a consequence of the settlor’s death, for example under the will or a beneficiary designation of the settlor, it is called a “testamentary trust”.

Detailed explanation-4: -Revocable living trusts (inter vivos trusts) are created during the lifetime of the grantor.

Detailed explanation-5: -An inter vivos transfer is a property transfer that is made during a transferor’s lifetime. Living trusts are trusts created during the lifetime of a settlor and are revocable before that settlor’s death (see: revocable living trusts). This is also known as an inter vivos trust.