Types of Trusts

By on August 21st, 2017

  • Charitable Trust
  • Living Trust
  • Irrevocable and Revocable Trust
  • Land Trust: this trust type deals with the bequeathing of a real estate title to the beneficiary of the trust.
  • Generation-Skipping Trust: this trust is used when the trustee is one or more generation younger than the donor.
  • Constructive Trust: this type of trust is established by the court based on the grantor’s information, facts, and circumstances to ensure that no one is being deprived of their rights and belongings.
  • Special Needs Trust: this trust is designed to provide income to those with special needs while still allowing them to receive government benefits.
  • Medicaid Trust: this irrevocable trust is used to benefit a person that has too much income to receive government aid, but not enough to cover necessary medical bills.
  • Spendthrift Trust: this is a type of irrevocable trust where the donor decides how they money will be spent on behalf of the beneficiary and is often used when the grantor does not trust the financial decisions of the trustee.
  • Tax By-Pass Trust: this trust type is used to avoid the estate tax when leaving money to a spouse or descendant.
  • Grantor Retained Trusts: this trust has three sub-types: annuity gives the trustee a set amount of money at regular intervals; unit which pays the beneficiary a percent of a trust; and income which allows for assets to be placed in the trust without the grantor giving up the income.
  • Qualified Personal Residence Trust: this is similar to a Grantor Retained Income Trust where property can be placed in a trust to reduce the gift tax without the trustee being in charge of the income.

 

Categories: Estate Planning, Wills and Trusts
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