A living trust—also known as an inter vivos trust—is a trust that is created and takes effect during the lifetime of the person who creates the trust and places assets in it (the grantor or settlor). The beneficiaries named in the living trust will receive the assets or the income from the assets, as provided by the trust agreement.

The living trust will name a trustee (and possibly successor trustees) to manage and administer the trust.

A living trust is in contrast with a testamentary trust that is created by a will and takes effect when the grantor or settlor (the testator who made the will) dies.

In Iowa, a living trust, or inter vivos trust, is a legal arrangement where a grantor places assets into a trust to be managed by a trustee for the benefit of designated beneficiaries during the grantor's lifetime. The trust is governed by the terms set out in the trust agreement. Living trusts in Iowa are commonly used for estate planning purposes, as they can help avoid probate, provide privacy regarding the assets and their distribution, and allow for more control over the assets during the grantor's life and after their death. Unlike a testamentary trust, which is established upon the death of the individual through their will, a living trust is active and operational during the grantor's lifetime. The trust document will specify how the assets are to be managed and distributed, and it will name a trustee who is responsible for administering the trust according to its terms. Successor trustees may also be named to take over if the original trustee is unable to serve. It's important to note that living trusts must be properly funded by transferring assets into the trust to be effective. Additionally, living trusts in Iowa are subject to state laws that outline the formalities for creating a valid trust, the duties and powers of trustees, and the rights of beneficiaries.