Inter Vivos: A Comprehensive Guide to Living Property Transfers

Definition & Meaning

Inter vivos is a Latin term that translates to "among the living." It refers to the transfer of property or assets between living individuals, rather than through a will after someone's death. An inter vivos gift is a gift given while the donor is alive. Similarly, an inter vivos trust, also known as a living trust, is established during the lifetime of the person creating it, distinguishing it from a testamentary trust that only comes into effect after death.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A parent decides to gift their home to their child while they are still living. This transfer is documented through a deed, and the parent retains the right to live in the home for the rest of their life.

Example 2: A person establishes a living trust to manage their assets during their lifetime and specifies how those assets will be distributed after their death (hypothetical example).

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Inter vivos gifts are generally not subject to gift tax if below a certain threshold.
New York Specific rules dictate how inter vivos trusts are managed and taxed.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Description
Testamentary trust Created through a will and takes effect after the death of the testator.
Gift causa mortis A gift given in anticipation of death, which is effective only if the donor dies.

What to do if this term applies to you

If you are considering making an inter vivos gift or establishing a living trust, it's important to:

  • Consult with a legal professional to understand the implications and requirements.
  • Use legal templates from US Legal Forms to draft the necessary documents.
  • Ensure that the transfer does not leave you without adequate means of support.

Quick facts

  • Inter vivos gifts occur between living individuals.
  • Living trusts are a type of inter vivos trust.
  • Legal capacity of the donor is essential for valid transfers.
  • Tax implications may vary by state and gift amount.

Key takeaways