What Are Some Common Types Of Trusts?
Trusts come in a variety of forms and can be established in many different situations. The most common forms of trusts include: • Asset Protection Trusts: Designed to protect a person’s assets from claims of future creditors • Charitable Trusts: Established to benefit a particular charity or the public. These are typically established as part of an estate plan to lower or avoid imposition of federal estate and gift taxes • Implied Trusts: These arise from particular circumstances in which a court determines that although there was not any formal declaration of a trust, the property owner intended the property to be used for a particular purpose or to go to a particular person. For example, suppose a neighbor asks you to take care of her car when she is on vacation and never returns; this is an implied trust as she was not making a gift of the car to you • Living or Inter Vivos Trusts: Created during the lifetime of the grantor. The most common type is a revocable living trust in which
