Legal Definitions - inter vivos transfer

An inter vivos transfer refers to any transfer of property or assets made by a person while they are still alive. The term "inter vivos" is Latin for "between the living," emphasizing that the transfer takes effect during the transferor's lifetime. This type of transfer is distinct from a "testamentary transfer," which occurs after a person's death, typically through a will or trust that becomes effective upon their passing.

Here are some examples to illustrate an inter vivos transfer:

• Gifting a Family Home: A grandmother decides to transfer ownership of her vacation cottage to her granddaughter. She signs and records a new deed, legally changing the property's owner while she is still alive.

  This is an inter vivos transfer because the grandmother, as the transferor, executed the transfer of the property during her lifetime, and the granddaughter received legal ownership immediately or at a specified point before the grandmother's death.

• Donating to a Charitable Organization: A philanthropist writes a check for a substantial sum and donates it to a local animal shelter. The shelter receives and uses the funds immediately.

  This exemplifies an inter vivos transfer because the philanthropist made the donation and relinquished control of the money while they were alive, and the animal shelter gained ownership of the funds during the philanthropist's lifetime.

• Selling a Business: An entrepreneur sells their successful small business, including its assets, intellectual property, and client list, to a new owner. All necessary legal documents are signed, and funds are exchanged while both parties are alive.

  This is an inter vivos transfer because the entrepreneur transferred ownership of the business and its components to the buyer during their lifetime, and the buyer took control of the business while the entrepreneur was still living.