What are some of the types of trusts?
• Revocable Living Trusts. Revocable Living Trusts are perhaps the most common type of trust. These trusts enable a grantor to be both the creator, beneficiary and trustee of the trust. • Generation-Skipping Trusts (a/k/a Dynasty Trusts). Generation-Skipping Trusts are estate tax-saving trusts that can benefit grandchildren, great-grandchildren or other descendants further down the family tree. They are often designed to last for multiple generations, or even forever, if permitted by state law. • Irrevocable Life Insurance Trusts (“ILITs”). ILITS are estate tax-saving trusts that own life insurance policies on the life of the grantor. The proceeds of the life insurance policy are used for the benefit of the grantor’s designated beneficiaries. Charitable Trusts. Charitable Trusts are trusts created to benefit charities. Often these trusts will be structured as so-called “split-interest trusts,” which provide a benefit for a non-charitable beneficiary such as a family member (or even the
