A trust that becomes operative during the lifetime of the settlor; opposed to a trust under will.

A trust that becomes operative during the lifetime of the settlor; opposed to a trust under will.

• A. Testamentary Trust
• B. Living Trust
• C. Revocable Trust
• D. Charitable Trust

Answer: (B)

The key idea is when the trust takes effect: a trust that becomes operative during the settlor’s lifetime is an inter vivos, or living, trust. It’s created and funded while the person is alive, and can take effect immediately or on a set condition, independent of the person’s death. A testamentary trust, by contrast, is created under a will and only comes into being after the settlor dies and the will is probated. A revocable trust describes whether the settlor can change or cancel the trust, which is a feature of many living trusts but not the timing itself. A charitable trust is defined by its purpose, not when it takes effect. So the living trust best fits the description.

The key idea is when the trust takes effect: a trust that becomes operative during the settlor’s lifetime is an inter vivos, or living, trust. It’s created and funded while the person is alive, and can take effect immediately or on a set condition, independent of the person’s death. A testamentary trust, by contrast, is created under a will and only comes into being after the settlor dies and the will is probated. A revocable trust describes whether the settlor can change or cancel the trust, which is a feature of many living trusts but not the timing itself. A charitable trust is defined by its purpose, not when it takes effect. So the living trust best fits the description.