What kinds of trusts are there?
There are many different kinds of trusts. To begin with, a trust can be either “revocable” (meaning that it can be changed or revoked) or “irrevocable” (meaning that it cannot be changed). The person creating a living trust decides whether it is revocable or irrevocable. A testamentary trust is usually revocable during the testator’s life and irrevocable after the testator’s death. Revocable living trusts are discussed below under the question, “What is a grantor trust?” Other types of trusts include protective trusts, bypass (or “credit shelter”) trusts, marital trusts (including “QTIP” and “QDOT” trusts), insurance trusts, minors’ trusts (also called “2503(c) trusts”), “Crummey trusts” (called after a man named Crummey), personal residence trusts (“QPRTs”), grantor retained annuity trusts (“GRATs”), charitable split-interest trusts (including “CRUTs”), wholly charitable trusts (such as private foundation trusts), and special needs trusts.
