Which best describes the nature of a revocable inter vivos trust?

A revocable inter vivos trust is indeed established during the lifetime of the grantor, which is a key characteristic that sets it apart from other types of trusts. This means that the grantor creates the trust while they are still alive, allowing them to manage and control the assets placed within it.

The term "revocable" is significant because it indicates that the grantor retains the ability to modify, amend, or even revoke the trust at any time before their death. This flexibility permits the grantor to adjust the trust's terms or even its beneficiaries as circumstances change, making it a dynamic estate planning tool.

The other options do not accurately reflect the nature of a revocable inter vivos trust. For instance, it can indeed be changed or revoked by the grantor, which directly contradicts the notion that it cannot be changed after creation. Furthermore, assets held in a revocable trust generally do not require probate when the grantor passes away, as they are managed outside of the probate process. Finally, characterizing it as a permanent financial arrangement is misleading because of its revocable nature, allowing it to be altered at the grantor's discretion.