Scenario 20: If a trust is established during the settlor's lifetime, it is known as a:

Question: Scenario 20: If a trust is established during the settlor's lifetime, it is known as a:

Answer options:

• Testamentary trust ✅ Inter vivos trust
• Charitable trust
• Blind trust

Correct answer: Inter vivos trust

Explanation: An 'inter vivos trust' (Latin for 'between living persons') is a trust created and funded by the settlor during their lifetime, as opposed to a testamentary trust, which is created by a will after death. The correct answer is "Inter vivos trust". This capacity-fill scenario 20 reinforces the same competency for the cfp bank and follows the certified explanation standard.