What are the basic kinds of Trusts?
A. The Living” Trust is made while the person establishing the Trust (known as the grantor) is still alive and the grantor’s property or assets are transferred into the Trust. The Trust appoints a Trustee to manage the property placed into the Trust and sets forth instructions regarding the management and distribution of the assets. You may choose to serve as the Trustee of your own Trust Living Trusts can be revocable or irrevocable. The most popular type of Trust is the Revocable Living Trust, which allows the individual to make changes to the Trust during his or her lifetime. A Revocable Trust usually directs the Trustee to pay all income to the grantor for life and to pay the Trust assets to named beneficiaries after the grantor’s death. Revocable Living Trusts avoid the probate process but do not provide shelter from federal or state taxes or long-term care costs. An Irrevocable Living Trust is usually set up to reduce estate or income taxes. For tax purposes, the Trust becomes a
