Charlotte Trusts Attorney

Types of Trusts & How They Are Used

Many people are familiar with the concept of a trust, but few know the different types of trusts and how they are best utilized. Although there are multiple special-use trusts, all trusts fall into one of two categories: revocable trusts and irrevocable trusts. To determine which type of trust you may need, the first step is understanding the difference between the two types of trusts.

Speak with the Charlotte trusts attorney at the Law Office of Kelli Y. Allen, PLLC today to learn more. At our firm, we provide personalized legal counsel and assistance with all aspects of elder law. Our goal is to help you plan for your future and the future of your loved ones.

Revocable (Living) Trusts

A revocable (living) trust allows for a technical change of ownership (from the individual name to the trust name) but does not alter the control the individual has over the property. All assets held in the name of the revocable trust are completely accessible by the grantor (person creating the trust). Instead of being titled in the name of John Doe, for example, the assets are titled in the name of the trust (ex. John Doe Living Trust).

In this situation, John Doe can still withdraw funds, sell the property, and do everything with the assets that he could while they were in his individual name. But, instead of acting as an individual, he is acting as the trustee (administrator) of the trust. If at any point John Doe wishes to dissolve the trust or move trust property back to his individual name, he is free to do so.

A living trust is frequently used as a means of avoiding probate. Rather than having property distributed under the terms of a will at the time of death, the property remains in the trust to be distributed according to the terms dictated by the individual who set up the trust.