What are the different types of trusts?

Trusts are a type of legal instrument used to manage and protect property. In North Carolina, there are several types of trusts that can be used for elder law. The most common type of trust is a revocable living trust. This type of trust is created during a person’s lifetime and can be amended or revoked at any time. The trust holds title to the property and the creator of the trust, or the ‘grantor’, is the trustee. This type of trust allows the grantor to provide for their estate planning needs without going through probate. Another type of trust is an irrevocable trust. These trusts are typically used when a person is transferring property out of their name into the trust. The grantor will no longer have control over the property and cannot revoke the trust. This type of trust is commonly used for asset protection purposes and to avoid estate taxes. Special needs trusts are trusts that are used for someone with disabilities. This type of trust allows the trustee to manage assets that are intended to be used for the needs of the disabled person. Special needs trusts must be carefully structured to ensure that the beneficiary continues to receive any governmental benefits they are eligible for. Finally, a testamentary trust is created upon the death of the grantor. The property is transferred to the trust through the will of the grantor and the trustee is the executor. The property in the trust is managed according to the grantor’s wishes, which are stated in the will. In North Carolina, these are the different types of trusts used in elder law. Each type of trust provides a different solution to estate planning and asset protection.

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What are the different types of trusts?

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