What are various types of trusts?


Quick Answer

The various types of trust include asset protection trusts, revocable and irrevocable trusts, constructive trusts and charitable trusts, notes FindLaw. A trust can be established while the trust maker is still alive, with the intent that the trust is used after his death. A will can also establish a trust to be created after the individual is deceased.

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Full Answer

A revocable trust can be changed while the trust maker is still alive, explains FindLaw. This type of trust allows the trust maker to name himself as trustee and to add or remove title from the trust at his own discretion. The difference between an irrevocable and revocable trust is that the trust maker can't alter the terms of the irrevocable trust.

An asset protection trust protects assets from any creditor claims and is generally used outside of the United States. This type of trust is usually established so that any assets that aren't distributed go back to the trust maker when the trust ends, as long as there is not a risk of any claims by creditors, states FindLaw.

A charitable trust is established so that assets can be transferred to a charity or the general public, according to FindLaw. A charitable trust may avoid gift taxes and estate taxes, as well as provide certain benefits to the trust maker.

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