Although a testamentary trust will not avoid the need for probate and will become a public document as part of your Will, it can be useful in accomplishing many estate planning goals. This is primarily due to the level of flexibility they provide. Estate planning is a diverse and intricate field. Common Types of Trusts Used in Estate Planning.

Classification of Trusts by Purpose. Here are several of the most common types of trusts and a brief overview of their purpose: Estate Planning Compass. Types of Trusts: The Basics Depending on how new you are to the world of estate planning, you may need a quick primer on more than the most common types of trusts. While the two basic classifications of trusts (i.e., living vs. testamentary and revocable vs. irrevocable) cover the various types of trusts in existence today, there is still one other form of classification that is used to distinguish one type of trust from another - that is, the purpose of the trust. After establishing a revocable trust, the trust creator can amend or revoke the trust at any time. Testamentary Trusts have no power or effect until the Will of the deceased is probated. A revocable trust allows the trust creator to maintain control of all trust assets. Many financial planning objectives can be accomplished through the utilization of trusts. “B” trust, also called a bypass trust or credit shelter trust: these trusts attempt to fully utilize the federal estate tax exemption for both spouses by bypassing the surviving spouse’s estate. With a revocable trust, the person who creates the trusts retains full control over the assets therein. Here are the most common types of trusts: Livings Trusts A living trust is usually created by the grantor, during the grantor's lifetime, through a transfer of property to a trustee. Because trusts are usually not filed with the court, the terms of your trust remain private. Revocable and Irrevocable Trusts: The two basic types of trusts are revocable and irrevocable. And while it may seem ideal to have a single type of trust that could be used for every family scenario, a one-size-fits-all trust will fall short of meeting the individual needs and unique family makeup of … Between the two main types of trusts, revocable trusts are the most common. The Most Common Types of Irrevocable Trusts August 25, 2017 by cacpro Leave a Comment If you have a significant estate and you want to ensure that your assets will be distributed according to your wishes when you die, you’ve probably heard about or even given … Below are several of the more common types of trusts. The main advantage of this type of trust is that it allows for the probate process to be avoided, as well as for the postponement of gifting to grandchildren or other beneficiaries. Revocable Trusts. Children’s Trust. In a revocable trust, the trustor (or the person who created the trust) has the option to modify or cancel the trust at any time during their lifetime.