Lifetime trust is defined as?

• A. An express trust created during the grantor's lifetime, excluding certain categories.
• B. A trust created by the guardian.
• C. A trust created by court decree.
• D. A trust created in deposits in a bank.

Answer: (B)

In Surrogate’s Court practice, a lifetime trust is formed during the beneficiary’s life, often through someone with fiduciary authority like a guardian who creates the trust to manage and protect the ward’s assets while the ward is alive. This setup allows the guardian to control, preserve, and distribute funds in accordance with court oversight and the ward’s best interests, rather than waiting to act only after death via a will. That’s why the idea of a trust created by the guardian best fits the concept of a lifetime trust. In contrast, a trust created by court decree is imposed by a court, a bank deposit is not a trust, and an express trust created during the grantor’s lifetime is not as precise about who establishes it in guardianship contexts.