When understanding legal concepts, it’s important to understand what inter vivos means. Inter vivos is a Latin term, translating to “between living persons.” This legal concept is important as it determines the transfer of ownership and asset ownership from one living person to another during the lifetime of both parties.
Inter vivos transfers can take the form of either inter vivos gifts or inter vivos trusts. Inter vivos gifts occur when one person gives property to another while both are living, such as when a parent gives a car to their adult child. Inter vivos trusts are created by a trustor to ensure that their assets are managed according to their wishes after their death in the case of the trustor’s death.
Inter Vivos In Practice
While it’s important to understand the concept of inter vivos, it is just as important to understand how this legal concept plays out in practice. The primary example of its use is in estate planning. When you create an estate plan, it can include both inter vivos transfers, such as gifting an asset while you are alive, and testamentary transfers, such as leaving an asset in a will.
Another example of how Inter vivos is used in practice is if a business decides to reorganize or merge. Inter vivos transfers of ownership are used to transfer assets between the two entities. This transfer allows the new entity to receive full ownership control of the company.
Conclusion
Understanding the essence and usage of inter vivos is an essential component of any professional’s legal knowledge. Whether it be estate planning or mergers and acquisitions, understanding this powerful concept can make a big difference in how the legal issues are handled.