Listen to a Business English Dialogue about Inter vivos trust
Nathan: Hey Lillian, have you heard of an inter vivos trust?
Lillian: Yes, I have. It’s a trust created during the lifetime of the person who sets it up, right?
Nathan: That’s correct. It’s often used for estate planning to transfer assets to beneficiaries while avoiding probate.
Lillian: So, would you say it’s a useful tool for passing on assets to loved ones?
Nathan: Absolutely. Inter vivos trusts can help ensure that assets are distributed according to the grantor’s wishes without going through the probate process, which can be time-consuming and costly.
Lillian: That sounds like a smart way to plan for the future. Are there any downsides to setting up an inter vivos trust?
Nathan: Well, one potential downside is that setting up and maintaining a trust can involve legal and administrative fees. Additionally, assets placed in the trust may be subject to gift tax if they exceed certain limits.
Lillian: I see. So, it’s important to weigh the benefits against the potential costs and tax implications.
Nathan: Exactly. It’s essential to consult with a legal or financial advisor to determine if an inter vivos trust is the right option for your estate planning needs.
Lillian: Thanks for explaining that, Nathan. I’ll be sure to keep that in mind if I ever consider setting up a trust.
Nathan: You’re welcome, Lillian. If you have any more questions about inter vivos trusts or estate planning, feel free to ask.