A lifetime trust is described as which of the following?

• A. An express trust created during the grantor's lifetime
• B. A trust created by will
• C. A deed of trust
• D. A mortgage

Answer: (A)

Inter vivos trusts are created during the grantor’s lifetime. This type of trust is express, meaning the settlor clearly states the terms and appoints a trustee while alive, often funding the trust with assets already or during life. A trust created by will is a testamentary trust, which takes effect only after death. A deed of trust is a real estate financing instrument, not a trust created to manage assets, and a mortgage is a lien on property, not a trust. So the description that best fits a lifetime trust is an express trust created during the grantor’s lifetime.