What are the 4 types of trusts?
Estate planning and legal asset management classify fiduciary trust structures into four primary categories based on their operational control and revocability. The first is revocable living trusts, allowing the grantor to modify or dissolve the trust terms during their lifetime while maintaining complete control over assets. The second is irrevocable trusts, which permanently transfer asset ownership out of the grantor's estate to provide maximum tax protection and asset shielding from creditors. The third is testamentary trusts, which are established according to the instructions of a last will and testament and only take effect after the grantor's death. The fourth is charitable trusts, designed to distribute remaining assets or income streams to philanthropic organizations and qualified non-profit institutions.
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