Trusts play a vital role in many estate plans. Trusts are utilized to protect certain assets from taxes and the probate process, while also making the execution of an estate plan a bit simpler and efficient. There are many different types of trusts, and so today we're going to talk about a few of the common trusts that people use to bolster their estate plans.
Revocable trusts are a very common type of trust. They are often called "living" trusts, because they are created while the trustmaker is alive. Revocable trusts can be changed, altered and revoked during their existence. The trustmaker can transfer assets and property to the trust, and then those assets and pieces of property would be protected from the probate process. Revocable trusts don't protect the assets from creditors, though.
An irrevocable trust is very similar to a revocable trust, except that it can't be changed, altered or revoked once it become irrevocable. Irrevocable trusts can have immense tax benefits for the estate.
An asset protection trust is something that is usually set up outside of the United States. This type of trust can protect your assets from claims by creditors. They usually forbid the trustmaker from benefiting from the trust, and the trust is usually irrevocable for a certain amount of time.
These are just three of the many types of trusts that people can utilize to help their estate. If you have any questions about trusts, or your estate plan, you should consult with an experienced attorney.