Each type of trust has its own rules, benefits, and structure. Which one you choose will depend on your unique financial needs and how you’d like your current and future assets to be managed. While there are several trust types divided into specific subcategories, there are four main types that they can be classified into.

The four common types of trust are:

• Living Trust (Inter Vivos Trust): Created while the grantor is still alive, a living trust allows for the efficient transfer of assets to beneficiaries, successfully avoiding probate and therefore saving time and money later on.
• Testamentary Trust: Set up after death in response to the contents of your last will and testament, this is a flexible trust option since its terms can be modified at any time up until the benefactor’s death.
• Revocable Trust: A type of living trust, the terms of a revocable trust can be altered during the grantor’s lifetime.
• Irrevocable Trust: Created primarily to transfer assets out of a taxable estate, the terms of an irrevocable trust cannot be adjusted after creation. However, income from the assets is not taxable before or after the death of the benefactor.

The best time to think about preparing a trust is now. Contact Christopher Blair Law today to schedule a free consultation.