{"id":287086,"date":"2016-04-04T10:45:50","date_gmt":"2016-04-04T15:45:50","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/estate\/trusts\/types-of-trusts.html"},"modified":"2025-07-25T12:37:00","modified_gmt":"2025-07-25T17:37:00","slug":"types-of-trusts","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/estate\/trusts\/types-of-trusts.html","title":{"rendered":"Types of Trusts"},"content":{"rendered":"\n
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Types of Trusts<\/h1>\n\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Aisha Success, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

A\u00a0trust\u00a0is a legal document that creates a virtual container for money and property. These assets are managed by a\u00a0trustee (an institution or person) for the benefit of another (the beneficiary). However, there are different types of trusts, such as revocable, irrevocable, charitable, and testamentary trusts that provide different benefits.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Once the grantor transfers ownership of an asset to the\u00a0trust<\/a>, that asset belongs to the trust itself, not to the trustee. However, the trustee still holds the title to the trust property.<\/p>\n

The trustee holds the trust property for the trust beneficiaries’ benefit. The trustee cannot do whatever they want with the trust’s assets. They must follow the terms of the trust document. As a\u00a0fiduciary<\/a>, the trustee must look to the best interests of the beneficiaries.<\/p>\n

Primary Goals of a Trust<\/h2>\n

Different types of trusts will accomplish distinct goals. Some people create trusts for tax purposes. Trusts transfer assets to heirs and beneficiaries while minimizing or eliminating estate taxes. There are trusts used solely by married couples, trusts that benefit certain types of people (and pets), and trusts that benefit charities and nonprofit organizations.<\/p>\n

Common Types of Trusts<\/h2>\n

Common types of trusts fall into four categories. The trusts discussed below will be placed into two (or more) of these categories:<\/p>\n

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  1. Inter vivos trusts or living trusts<\/b>: Created and active during the lifetime of the grantor<\/li>\n
  2. Testamentary trusts<\/b>: Trusts formed after the death of the grantor<\/li>\n
  3. Revocable trusts<\/b>: Can be changed or revoked entirely by the grantor<\/li>\n
  4. Irrevocable trusts<\/b>: Can’t be changed or revoked by the grantor once they are implemented<\/li>\n<\/ol>\n

    Revocable Living Trusts<\/h2>\n

    A grantor creates a\u00a0revocable living trust<\/a>\u00a0(inter vivos trusts)\u00a0during the grantor’s lifetime. They can be modified or revoked entirely at the instruction of the grantor.<\/p>\n

    The grantor often serves as the initial trustee. They can transfer property into the trust and remove property from the trust during their lifetime. A revocable trust becomes an irrevocable trust upon the death of the grantor.<\/p>\n

    Pros of a Revocable Living Trust<\/h3>\n