What are the basic types of trusts?
There are two basic types of trusts. The “living” or “intervivos” trust is created during the lifetime of the grantor when all or part of the grantor’s property is transferred into the trust. A “testamentary” or “after-death trust” is created by the settlor’s will which transfers property to the trust. Testamentary or after-death trusts. An after-death trust will be created by a will after a person’s death. The assets to fund these trusts must usually go through the probate process, and may be supervised by the court even after the estate is closed. An example of an after-death trust would be one created by a parent leaving land to a trust to benefit a minor child in his or her will. The will establishes the trust to which the land is transferred, to be administered by a trustee until the child reaches a stated age, at which point title to the land is transferred to the child outright. Living trusts. A living trust is a trust made while the person establishing the trust is still alive.
