What are the different types of trusts and how do they work?

Trusts are an important part of estate planning law in West Virginia. A trust is a legal arrangement wherein a party known as the “trustee” holds property or assets for the benefit of the beneficiary. There are several different types of trusts, each of which works differently depending on the needs and goals of the parties involved. The first type of trust is the revocable living trust. This type of trust can be changed or revoked during the lifetime of its creator, hence the term “revocable.” This type of trust allows the trustor to retain control over their assets while they are alive, and can be changed or amended if their circumstances or goals change. The second type of trust is an irrevocable trust. This type of trust cannot be changed or revoked once it is created, and all assets must be transferred out of the trustor’s name into the trust. This type of trust is commonly used to protect assets from creditors, avoid estate taxes, or transfer assets to another generation. It can also be used in special circumstances like charitable donations or making sure a beneficiary is provided for in the event of the trustor’s death. The third type of trust is a testamentary trust, which is created after the death of the trustor in their will. This type of trust can be used to provide for surviving family members or to fund charitable donations in the event of the trustor’s death. These three types of trusts are the most commonly used in estate planning law in West Virginia, but there are many other types of trusts available depending on the needs and goals of the trustor. Estate planning law can be complex and is best handled by an experienced attorney.

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What are the different types of trusts and how do they work?

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