Revocable and Irrevocable Living Trusts
Different Types of Trusts
Revocable Living Trust
One of the most simple and popular trusts is the revocable living trust. The idea behind this type of trust is that you may wish to transfer your property to yourself, or to another highly qualified and trusted person, while you retain all of the rights of ownership during your lifetime. This type of trust typically provides that the property passes to your specified beneficiaries on your death. This means that you are often able to avoid the probate process in your state. Generally, this is the sole purpose for forming a revocable living trust, as there are no significant estate tax planning or gift tax benefits from these types of trusts.
Tax Planning Trusts, Children's Care or Dependant Care Trusts and Other Trusts
Trusts can serve a number of useful purposes. However, it is beyond the scope of this dicussion to cover each of these trusts and their purposes. Should you need to determine whether a trust can serve a specific need, it is best to consult with one of the Plan Attorneys in your legal plan, if you are a member, so that you can devise the best possible means of accomplishing your goals.