Revocable – a Settlor can modify the terms, add or delete

beneficiaries, or even revoke the trust at any time and for any reason

– or for no apparent reason

Irrevocable – once the trust takes effect the Settlor cannot modify,

change, or revoke the trust for any reason. A court may be able to do so

with good cause

Settlor – the Settlor is the person who creates the trust

Trustee – the Trustee is responsible for managing and

investing trust assets, disbursing those assets to beneficiaries, and

generally overseeing the administration of the trust

Beneficiary – every trust needs at least one beneficiary, though it can have many. A beneficiary can be an

individual, an entity, or even the family pet

Terms – the Settlor creates the terms of the trust which can be

almost anything as long as they are not illegal or unconscionable

Assets – the trust must be funded. Assets can be almost anything,

including cash or securities as well as real or personal property

Managing and protecting trust assets

Investing trust assets using the “prudent investor” standard

Fiduciary duty to the trust and trust beneficiaries

Communicating with beneficiaries

Disbursing trust funds pursuant to trust terms

Keeping detailed accounts and records of trust business

Preparing and paying trust taxes

Making discretionary decisions if allowed

Resolving conflicts with beneficiaries

Revocable living trust for incapacity – by naming yourself as the Trustee, and a trusted love one as the successor Trustee, this

trust allows you to create a mechanism by which control of all trust assets automatically shifts to the successor Trustee upon your

incapacity, thereby allowing you to know ahead of time who will have

control of your assets

Asset Protection Trust – a type of irrevocable trust used to protect assets from creditors, spendthrift

beneficiaries, spouses, and any other threats

Special Needs Trust –allows the Settlor, and others, to provide

supplemental assets to a special needs beneficiary without risking

eligibility for state and federal assistance programs

Charitable Lead/Remainder Trust – provides distributions to a charitable beneficiary first for a set period of time or for a set amount

of assets with the remainder distributed to a non-charitable

beneficiary at the end OR the non-charitable beneficiary may receive

benefits or vice versa

Pet Trust – provides for the care of a pet after the death of the Settlor

Medicaid Trust – assets are transferred into an irrevocable trust, removing them from the

Maker’s “countable resources” for Medicaid eligibility purposes. Maker may benefit from the

interest earned by the trust but cannot touch the assets. Ensures

eligibility for Medicaid to help pay for long-term care

If you plan to establish a trust, it is also imperative that you ignore the

temptation to use a DIY trust agreement which are found online or

at a nearby office supply store

The risk of costly errors in a DIY form are great and can cause your trust not to function as intended