An inter vivos (which literally means ‘between the living’) trust is created between living persons.

This type of protective trust may be established to safeguard assets for a vulnerable person.

One person - the settlor - creates a trust to benefit a nominated beneficiary.

On the establishment of the trust, the settlement funds and/or property are no longer assets which belong to the settlor and they no longer form part of his/her personal estate.

The purpose of the trust may be to provide financial assistance by way of regular or discretionary payments to the beneficiary.