The type of Trust you select will depend upon your personal financial situation and future objectives. Below are some of the most common types of trusts used in estate planning.

Revocable Living Trusts

A Revocable Living Trust is a flexible estate-planning tool that can be used under a variety of circumstances: while you're still living, in the event you are incapacitated and when you die.
Under the terms you stipulate as grantor of a Revocable Living Trust, you can retain a corporate trustee to provide investment management services, collect income from the trust, and reinvest or distribute the income according to your wishes. The trustee can also pay bills from the trust and assume responsibility for recordkeeping.
You may serve as your own trustee, but a corporate trustee can relieve you of responsibilities you have neither the time or desire, or, perhaps, the ability to handle. You retain full control over the assets in the trust, as well as the right to amend or revoke the trust document at any time.

Irrevocable Trusts

With an irrevocable trust, the grantor cannot alter the terms or recover the assets during the trust's existence. Some of the more common types of trusts include:

  • Credit Shelter Trusts
    Credit Shelter Trusts, also known as the By-Pass Trust, are structured to provide the surviving spouse with annual income and access to principal.
  • Charitable Remainder Trusts
    Many individuals use the Charitable Remainder Trust as a vehicle to enable them to sell a highly appreciated asset without paying immediate capital gains taxes, reinvest the full amount and increase their lifetime income.
  • Irrevocable Life Insurance Trusts
    With a Life Insurance Trust, you can reduce your taxable estate. You simply place or purchase a life insurance policy inside of a Trust and pay premiums in the form of annual gifts to your beneficiaries.
  • Trusts For Minors
    A Minor's Trust is an irrevocable trust that can serve as an alternative to a Uniform Gifts to Minor's Account (UGMA).