The direct counterpart to an inter vivos trust is a testamentary trust. An inter vivos trust is created during the founder’s lifetime, while a testamentary trust is created under a person’s will and takes effect after that person dies.

A testamentary trust is commonly used where assets should not pass outright to a beneficiary, for example where beneficiaries are minors, have special needs, or should receive assets under continuing trustee management. The will contains the provisions that govern the trust, and the trustees appointed to administer it must obtain written authority from the Master of the High Court before acting.

Both inter vivos and testamentary trusts are regulated by the Trust Property Control Act. The main distinction is therefore when and how they are created: an inter vivos trust operates during the founder’s lifetime, while a testamentary trust forms part of the deceased person’s estate planning arrangements and takes effect after death.

See also: What is a living trust? | What type of trust is best for a family? | When to use an inter vivos trust?

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.