What are the types of trusts?

A trust is a legal agreement between a grantor (the person who creates the trust) and a trustee (the person who manages the trust). The trust can be used to transfer property or assets from one person to another. In Washington, there are typically five types of trusts used in estate planning: 1. Revocable Living Trusts: This is the most common type of trust. It allows the grantor to change or revoke the trust at any time. The assets placed in the trust are then managed by the trustee for the benefit of the beneficiaries. 2. Irrevocable Trusts: This type of trust is created with the intention that it will not be changed or revoked. The assets placed in this trust cannot be accessed by the grantor, and the trustee is tasked with managing the trust for the benefit of the beneficiaries. 3. Charitable Trusts: These trusts are created to benefit a charitable organization. The trust may include specific instructions on how the assets are to be used by the charity. 4. Special Needs Trusts: This type of trust is created to provide support for an individual with special needs. It allows the trust assets to be used for the special needs individual without impacting their eligibility for government benefits. 5. Spendthrift Trusts: These trusts are created to protect the assets from the beneficiaries’ creditors or anyone else they owe money to. The trustee is responsible for managing the trust assets for the benefit of the beneficiaries. Each type of trust has different rules and regulations, so it’s important to speak with a qualified attorney before deciding which type of trust is right for your situation.

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What are the types of trusts?

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