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 North Carolina, 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 North Carolina are commonly used to manage assets, avoid probate, and maintain privacy, as the details of a living trust are not made public like a will. The trust document will specify how the assets are to be distributed to the beneficiaries and may include provisions for managing the trust in the event of the grantor's incapacity. The trustee has a fiduciary duty to manage the trust assets in the best interests of the beneficiaries according to the terms of the trust. Unlike a testamentary trust, which is created upon the death of an individual and is part of a will, a living trust is effective immediately upon creation and funding. It's important for individuals creating a living trust in North Carolina to ensure that the trust is properly drafted and funded to effectively carry out their estate planning goals.