There are several types of trusts. The most common is a joint revocable trust established by parents or grandparents. Trusts can be revocable or irrevocable. There are several other types of trusts, most designed to reduce the financial impact of income taxes. These include the Asset Protection Trust, Charitable Trust, Constructive Trust, Special Needs Trust, Spendthrift Trust, and the Tax Pass-By Trust. We do not offer legal forms for any type of business trust. Our forms consist of personal trusts commonly executed by families.
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Revocable trusts are also known as living trusts. A revocable trust allow the transfer of assets without probate, yet they allow you to retain control of the assets during your lifetime. A revocable trust is flexible and can be dissolved at any time. A revocable trust typically becomes irrevocable when the grantor dies.
Irrevocable trusts typically transfer your assets out of your estate and often avoid estate taxes and probate. An irrevocable trust cannot be changed by the grantor after it has been executed. Once you execute an irrevocable trust, you lose control of the assets and cannot change any terms or decide to dissolve the trust.
Joint trusts are typically set up by a husband and wife. Unless specified in the trust agreement, a joint trust is revocable. Some agreements state that the trust can be revoked only by the consent of both spouses. This is a legal protection to cover both spouses in the event of a divorce. Grandparents often execute joint trusts to benefit their grandchildren. Often upon the death of both grandparents, the remainder of the trust is either given to the grandchildren if they are of age or remains in the trust until the grandchildren reach the age specified in the trust agreement.
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