There’s no one-size-fits all trust solution or strategy. Everything from your wishes, goals for your estate, your beneficiaries, and your financial assets will set the stage for you to formalize what you want for your legacy.

All of that also influences the type of trust that is best suited to meet your needs. This isn’t something you need to determine on your own. There are attorneys and Personal Trust Services teams that will work alongside you to assess your entire financial and estate picture in order to make the best recommendation.

While you’ll have a team of professionals for guidance, it doesn’t hurt to understand the different types of trusts available.

5 Common Types of Trusts

Revocable Living Trust
A trust created while the grantor is still alive and can be altered during their lifetime, can avoid probate after death. The owner, or grantor, can amend the terms or "revoke" the trust at any time.

Irrevocable Trust
A trust where the terms cannot be changed. Given the binding nature of the Trust, these are generally seen as being outside of a grantor's estate and are commonly created to support spouses and beneficiaries during the grantor’s life or after their death in a tax-efficient manner.

Grantor Trust
A type of trust that is designed to maximize gifts to beneficiaries by having the grantor pay income taxes for the trust after making the gift.

Charitable Trust
A trust created for a charitable entity while the grantor is still alive or at their death; can be altered during their lifetime and can avoid probate after death.

Minor Children Trust
A trust that holds assets until a minor reaches particular ages of majority and beyond.

By choosing the right type of trust, you’ll be providing for your loved one’s needs now and after your death, reducing or eliminating taxes, eliminating the time and expense of probate, and ensuring assets are conserved and not improperly spent by heirs.

All these benefits are worth taking the time today to have difficult discussions, envision your legacy, and realistically think about the transfer of your assets, and we can help. Our team can work with you to choose the right type of trust for you and your goals.

Consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.

Manning & Napier Personal Trust Services provided by Exeter Trust Company (ETC), a New Hampshire charted trust company and affiliate of Manning & Napier Advisors, LLC. Fiduciary trust and custody services are available through Exeter Trust Company.