Types of Trusts

Every trust is tailor-made to fit the financial needs and goals of the grantor. Here are some types of trusts and the general purposes they serve:

  • Living (Inter-Vivos) Trust
    • Created and funded during your lifetime. It can be revocable or irrevocable.
  • Revocable Trust
    • May be altered or terminated during the grantor’s life. Passed to beneficiaries only after the grantor’s death, then coverts to an irrevocable trust.
  • Irrevocable Trust
    • Cannot be modified. Can eliminate estate taxes. The trust is the owner of the assets.
  • Trust Under Will/Testamentary Trust
    • Created at the instruction of the will of the grantor and considered irrevocable. An effective estate-planning tool in providing for those who, because they are too young or otherwise not capable, cannot assume the responsibility of significant financial gifts.
  • Life Insurance Trust
    • Owns a life insurance policy or policies; provides for the reduction or avoidance of estate taxes.
  • Charitable Trust
    • Designed for gifts to a charity; achieves income and estate tax savings for the grantor.
  • Special Needs Trust
    • Provides for special or supplemental benefits to trust beneficiaries while preserving government benefits.
  • Court Appointments
  • Guardianships
  • Conservatorships

 


Securities are not insured by bank insurance, the FDIC or any other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks, including the possible loss of principal. Citizens National Bank is not a tax expert or CPA. Consult a tax expert or CPA.