What type of trust is established during the trustor's lifetime?

A trust established during the trustor's lifetime is specifically referred to as an inter vivos trust. This type of trust, also known as a living trust, is created and becomes effective while the trustor is still alive, allowing for the management and distribution of assets during their lifetime and beyond.

Inter vivos trusts offer several advantages, such as avoiding probate, maintaining privacy regarding asset distribution, and facilitating the management of assets in case the trustor becomes incapacitated. This flexibility makes inter vivos trusts particularly useful for estate planning, as they allow for both immediate control over the assets and predetermined instructions for their distribution after the trustor’s death.

In contrast, a testamentary trust is established through a will and comes into effect only after the trustor's death, which is not applicable here. An implied trust arises by operation of law rather than being explicitly stated, while an honorary trust, which is created for a purpose rather than for the benefit of specific individuals or entities, also does not fit this definition. Thus, the characteristics and functions of an inter vivos trust clearly distinguish it from these other types of trusts.