question.jpgIn Trusts and Estates

What is a gift in trust?

You can give a gift to somebody straight-up, while you are both still alive - this is known as an inter vivos transfer. However, there may be circumstances when you want to retain some control over the property, or place restrictions or conditions on it, and you cannot do this with an inter vivos gift. Instead, you can give a gift in trust, where the property is put into an inter vivos trust or a living trust. Property put into such a gift in trust would no longer be part of your probate estate when you die, because you do not fully own title in the property anymore (and depending upon the set-up of the trust, you may not own any title in the property).