Different Forms Of Trusts

 

ASSETS PROTECTION TRUSTS are designed to protect a person’s assets from claims of future creditors. These trusts are frequently established in the U.S. and throughout the world.

CHARITABLE TRUSTS are established to benefit charities, causes, organizations or the public.

CONSTRUCTIVE TRUSTS are trusts established by operation of law. Fraud and bankruptcy are examples where trustees of the court hold equitable title of property.

EXPRESS TRUSTS are specifically created by the settler under a trust agreement or declaration of trust.

IMPLIED TRUSTS are determined by courts where a formal declaration of trust was not made but there was an intention on the part of the property owner that the property be used for a particular purpose or go to a particular person or cause.

IRREVOCABLE TRUSTS are trusts that cannot be altered, changed, modified or revoked after its creation. Once the creator transfers property or assets to the trust they can no longer take the property back from the trust.

LIVING TRUSTS (another term for the Latin “Inter Vivos” trusts) are trusts created during the lifetime of a settler, which can be altered, changed, modified or revoked. The creator is the trustee and beneficiary usually with relatives as other beneficiaries.

RESULTING TRUSTS are trusts created by operation of law, when the legal title of property is transferred, but the beneficial interest is to be enjoyed by someone other than the person who received the legal title.

SPECIAL NEEDS TRUSTS are trusts created for a person receiving government benefits in order not to disqualify the beneficiary from such government benefits.

SPENDTHRIFT TRUSTS are trusts established for a beneficiary, which does not allow the beneficiary to sell or pledge away his or her interest in the trust. Spendthrifts are beyond the reach of the beneficiaries creditors, until such time as the trust property is distributed out of the trust and placed in the hands of the beneficiary.

TESTAMENTARY TRUSTS are trusts created by the terms and conditions of a will.