What is an inter vivos trust?

An inter vivos trust, also known as a living trust, is a trust that is established during the grantor's lifetime, hence the term "inter vivos," which is Latin for "between the living." This type of trust allows the grantor to manage assets and designate how those assets should be distributed after their death while still having control over the assets during their lifetime. By setting up an inter vivos trust, the grantor can avoid the probate process, streamline the management of their estate, and provide for efficient asset distribution.

In contrast, a trust created after death pertains to a testamentary trust, which only comes into effect upon the grantor’s death. A temporary trust refers to a trust set up for a limited duration, which is not the defining characteristic of an inter vivos trust. A charitable trust is specifically designed to benefit charitable organizations or purposes, separate from the personal estate planning objectives of an inter vivos trust. Thus, the defining feature of an inter vivos trust is its creation and operation during the grantor's lifetime, making option C the accurate choice.