Types of Trusts

The following is a list of basic types of Trusts:

Inter vivos Trust --Established by a grantor during their lifetime.

Testamentary Trust --In a will or a formal declaration of a person's wishes as to the disposition of their property after their death. A paper, instrument, document, gift, appointment, etc., is said to be "testamentary" when it is written or made so as not to take effect until after the death of the person making it, and to be revocable and retain the property under their control during their life, although they may have believed that it would operate as an instrument of a different character. A "trust under the will" is the same as a testamentary trust.

Revocable Trust --The grantor has control of the trust (power to repeal, annul) and will pay the taxes of the trust on their Form 1040 return. The grantor will file the Form 1041 return for "Information Only" purposes.

Irrevocable Trust-- The trust cannot be repealed or annulled. The grantor may have certain powers over the trust and be taxable on the Trust income.

Pooled Income Fund --A split interest trust with a remainder interest for a public charity and a life income interest retained by a donor or for another person.