Revocable Living Trust (RLT)
A RLT is created during the lifetime of the trustmaker(s) and can be amended or revoked at any time. A trust is not subject to probate like a stand alone will would be, which is an advantage because probate takes time, costs money, and is a matter of public record.
Irrevocable Trust (IRT)
Unlike a Revocable Living Trust, an IRT cannot be amended or revoked by anyone after it has been created.
“A Trust” or Marital Share
Upon the death of the first trustmaker, a RLT can be split into two trust shares. The “A trust” is the share for the surviving spouse during the remainder of his or her lifetime.
B Trust or Non-Marital Share
The “B Trust,” also known as a Bypass Trust, is the share of the estate of the spouse who passes first. This trust is irrevocable and is therefore creditor and predator protected. The assets in this share grow estate tax free and are passed down to the ultimate beneficiaries.
Charitable Remainder Trust (CRT)
“A charitable remainder trust is an irrevocable trust that generates a potential income stream for you, as the donor to the CRT, or other beneficiaries, with the remainder of the donated assets going to your favorite charity or charities” (https://www.fidelitycharitable.org/philanthropy/charitable-remainder-trusts.shtml)
Domestic Asset Protection Trust (DAPT)
An irrevocable, whereby assets are protected from creditors by laws in a special jurisdiction. The trustmaker can be the beneficiary of the trust, and the assets will still remain protected from creditors. These are often used in conjunction with business entities, like an LLC.
Grantor Retained Annuity Trust (GRAT)
A GRAT is an irrevocable trust whereby the trustmaker transfers specific assets into the trust to be held for the benefit of the trustmakers’ children or close family members. The trust receives annual annuity payments and the beneficiaries of a GRAT receive the trust assets virtually estate tax free.
Irrevocable Life Insurance Trust (ILIT)
An ILIT is an irrevocable trust set up to own life insurance policies and is the primary beneficiary of the policy. This can be helpful for tax efficiency under the annual estate tax exclusion rate, which is currently $5.49 million dollars.
Qualified Personal Residence Trust (QPRT)
“ Popular estate-planning vehicles for residential real estate (primary and secondary homes). Additionally, many families use trust funds to purchase residential real estate for the beneficiaries. The beneficiaries can use the home tax-free, and the home is protected from creditors. If the home is going to remain in trust for several generations, families may consider establishing a family time share. Revocable trusts are also used for privacy purposes as well as avoiding ancillary probate.”