What are the different types of trusts?

Trusts are a common tool used in elder law that can help protect the assets of older adults in South Carolina. A trust is a legal agreement between a grantor and a trustee that states that the trustee is responsible for managing the grantor’s assets on behalf of beneficiaries. There are several different types of trusts available, each with its own purpose and advantages. Revocable trust, also known as living trust, is the most common type of trust and can be modified or revoked by the grantor during their lifetime. The assets placed in a revocable trust are not subject to probate and can help provide for more efficient asset management after the grantor passes away. Irrevocable trust, also known as a testamentary trust, is created in a will and cannot be changed once the grantor passes away. This type of trust is often used to limit the use of assets to specific uses or only certain beneficiaries. Charitable trust is used to provide tax benefits and to donate money to charities. This type of trust allows individuals to protect their assets, while providing support for their favorite charities. Special needs trust is set up to provide support for someone with special needs without disrupting their eligibility for government assistance. This type of trust is irrevocable and can be used to provide supplemental income for individuals with special needs. These are the most common types of trust that are used in South Carolina to protect the assets of older adults. Each type of trust has its own legal framework, so it is important to work with a qualified elder law attorney to ensure that the trust is created properly.

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What are the different types of trusts?

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