Which type of trust can be altered by the grantor during their lifetime?

The correct response identifies an intervivos trust, also known as a living trust, as a type of trust that allows the grantor to retain the ability to alter its terms, amend it, or even revoke it during their lifetime. This flexibility is a key feature of intervivos trusts, making them popular for estate planning as they allow for modifications to adapt to changing circumstances, such as changes in family situations, financial status, or intended beneficiaries.

In contrast, an irrevocable trust cannot be changed once it has been established; the grantor relinquishes control over the assets placed in this type of trust. A testamentary trust is created through a will and comes into effect only upon the death of the grantor, meaning it cannot be modified while the grantor is alive. A joint trust, which is established by two or more individuals, often serves a different purpose and is typically irrevocable as well, depending on its terms.

The ability to alter the terms of a trust during the grantor's lifetime is a fundamental attribute that distinguishes intervivos trusts from other types, emphasizing their role in dynamic estate planning.