Here are some examples of actions and objects in real estate law with living persons: An inter vivos trust is a fiduciary relationship used in estate planning created during the trustee`s lifetime. Also known as a living trust, this trust has a term that is determined at the time the trust is established and may include the distribution of assets to the beneficiary during or after the life of the trustee. The opposite of an inter vivos trust is a testamentary trust that takes effect upon the death of the settlor. “Z”, a businessman, promises his nephew D a plot of land if he works hard and passes his exams. D meets Z`s expectations and is endowed with the land. Z then goes through all the land transfer processes and gives D his title deed. This type of donation is considered a gift among the living. Julia wants her grandson Mike to have his family at home. Mike recently got married and has a baby along the way, and Julia is interested in moving to her second home in Florida to escape the cold winters. Julia has just retired and is in good health, and she knows that Mike could immediately use the property or the money from the sale of the property to support his growing family. Instead of making Mike wait until his death to inherit her property, she makes Mike a gift of the house among the living, after which he has full ownership and can do whatever she wants with it.
Since Julia will no longer own the house at the time of her death, she will not go through the estate and will not be subject to inheritance tax. Inter vifs means in Latin “between the living”. A gift between living persons is a legal term that refers to a transfer or gift given to someone while both the donor and recipient are alive. A gift between living persons is the opposite of a testamentary transfer, which is a gift after death. For a gift between living persons to be complete, the intention of the donor to deliver the object of the gift to the donee and the actual delivery and acceptance by the donee must be clearly expressed. A gift between the living is different from a gift causa mortis, which is made in anticipation of imminent death. However, an inter vivos trust is a living trust because it allows the owner or settlor to use the assets and benefit from the trust during the life of the settlor. After the death of the settlor, the property is distributed by the trustee to the beneficiaries.
During their lifetime, in the case of a married couple, the settlor or settlor may be the trustee and manage the property until it is no longer able to do so when a designated alternate trustee takes over the functions. There are two categories of trusts into which a living trust may fall; revocable or irrevocable. A gift between living persons, which in Latin means a gift between the living, is a legal term that refers to a transfer or gift made during the life of the donor. Gifts between living persons, which include immovable property linked to an estate, are not subject to inheritance tax because they are not part of the donor`s estate at the time of death. A transfer between living persons takes place during the lifetime of the constituent. The term is often used to describe a trust established during one`s lifetime, that is, an inter vivos trust as opposed to a testamentary trust established after death, usually as part of a will. An inter vivos trust is often used interchangeably with the more common term living trust, but an inter vivos trust by definition includes revocable and irrevocable trusts. The term inter-vives is also used to describe living organ donation, in which one patient donates one organ to another while both are alive.
In general, transplanted organs are either non-vital organs such as corneas or superfluous vital organs such as one of the two kidneys or part of the liver. When people write their will or plan their estates, they can give a portion of their assets as gifts among the living, as the beneficiaries can benefit from the gifts immediately and the assets are eliminated from the estate, making the process easier. However, since gifts are not revocable, the donor can never regain ownership or control of the property. Almost any asset can be held by a trust. Assets such as real estate, investments and business interests may be renamed in the name of the trust. Some assets, such as life insurance and pension plans, are transferred to a specific beneficiary, so they do not need to be included. A gift is considered a gift between living persons if the donor voluntarily intends to do so; the gift is free and the donor has not received anything in return; There is an irrevocable surrender by the donor of the domination and ownership of the gift. A gift between living people is a useful estate planning strategy for several reasons. In addition to avoiding estate tax, the person making the gift can use the amount of the value as a tax credit for their tax return if it is given as a gift to a charitable foundation. In addition, many of the living give gifts simply because they want to oversee the gift during their lifetime, as opposed to gifts inherited by will or trust.
