A lifetime trust is best described as

• A. A lifetime asset protection trust designed to shield heirs from ruinous decisions and creditors.
• B. A trust that only lasts for a fixed term.
• C. A trust created to manage charitable donations.
• D. A revocable trust that avoids probate.

Answer: (A)

A lifetime trust is created during the grantor’s life and is often set up to protect assets for beneficiaries. The description described fits best as an asset protection trust, whose purpose is to shield heirs from ruinous decisions and from creditors by removing assets from the grantor’s direct control. This distinguishes it from other types: a fixed-term trust ends after a set period, a charitable trust is for charitable purposes, and a revocable living trust is mainly used to avoid probate and preserve control while alive, not to provide creditor protection.