What a trust is, in plain English
Think of a trust as a locked box with instructions. You put things you own inside it — like your house or savings — and you write down who gets them and when.
Three roles make it work: you (the person who sets it up), the trustee (the person in charge of the box — often you, at first), and the beneficiaries (the people who get what’s inside). You also pick a backup trustee who takes over if you can’t.
People use trusts to protect what they own, to make things easier for their family when they die — often skipping a slow court process called probate — and to have someone ready to help if they get sick. The right kind depends on your goals, your family and your state. New to the words? See trust words, made simple.
Irrevocable or revocable
Choose protection or flexibility. Not sure which fits? Send an inquiry and choose “Not sure yet.”
Asset protection
Irrevocable Trusts
The strongest option for asset protection. Assets you move into an irrevocable trust are generally no longer yours, so they can be shielded from future claims — depending on the trust type, your state and timing.
- Asset protection, Medicaid planning, life insurance and more
- Spendthrift protection for your beneficiaries
- Built around your specific goal
Flexible option
Revocable Living Trusts
A trust you create during your lifetime and can generally change or revoke while you are alive and have capacity. You keep control of your assets and name who takes over.
- Individual and joint (married couple) trusts
- Avoid probate for assets held in the trust
- Change it as your life changes
Will, revocable or irrevocable?
How the three generally compare — especially on protecting what you own.
| Topic | Will | Revocable trust | Irrevocable trust |
|---|---|---|---|
| Protection from your creditors | None | Generally none while you are alive | Can protect assets, depending on type, state and timing |
| Probate | Assets it covers generally go through probate | Assets in the trust can generally avoid probate | Assets in the trust can generally avoid probate |
| Control of the assets | You keep full control | You keep control as trustee | You generally give up ownership and control |
| Changing it later | Yes, by following signing formalities | Yes, while you are alive and have capacity | Generally no, except in limited ways |
| Privacy | Generally public in probate | Generally private | Generally private |
| If you can’t manage your affairs | No effect while you are alive | Successor trustee manages trust assets | Trustee manages trust assets |
| Estate and benefit planning | Limited | Limited | Used for estate tax, Medicaid and special needs planning |
Types of trusts
Every trust is either irrevocable or revocable, and most can include provisions that shape how and when beneficiaries receive money.
Irrevocable trusts
Generally can’t be changed once created. In return they can serve goals a revocable trust can’t.
- Irrevocable
Domestic asset protection trust
A self-settled trust that can help protect assets from future creditors while you remain a beneficiary. Only certain states allow them, such as Nevada, South Dakota, Delaware and Alaska.
- Irrevocable
Medicaid asset protection trust
Used in long-term care planning to preserve savings and a home for family. Subject to strict eligibility rules, including Medicaid’s five-year look-back period.
- Irrevocable
Irrevocable life insurance trust (ILIT)
Owns a life insurance policy, often so the payout is kept out of the insured person’s taxable estate.
- Irrevocable
Grantor retained annuity trust (GRAT)
Pays you a fixed amount for a set term, then passes remaining growth to beneficiaries. Used in gift and estate tax planning.
- Irrevocable
Qualified personal residence trust (QPRT)
Transfers your home to beneficiaries while you keep living in it for a set number of years.
- Irrevocable
Gifting trust (Crummey trust)
Receives yearly gifts for beneficiaries, typically structured to use the annual gift tax exclusion.
- Irrevocable
Dynasty / generation-skipping trust
A long-term trust for children, grandchildren and later generations, with specialized tax rules.
- Irrevocable
Bypass (credit shelter) trust
Used by married couples in estate tax planning, typically created when the first spouse dies.
- Irrevocable
QTIP trust
Provides income to a surviving spouse while controlling who ultimately receives the assets, often in blended families.
- Irrevocable
Charitable remainder trust (CRAT / CRUT)
Pays income to you or others for life or a term, then the remainder goes to charity. An annuity trust (CRAT) pays a fixed amount; a unitrust (CRUT) pays a fixed percentage.
- Irrevocable
Charitable lead trust
Pays a charity first for a set term, then the remainder goes to your family or other beneficiaries.
- Irrevocable
Special needs trust (third-party)
Provides for a person with a disability using other people’s money, designed with public-benefit rules such as SSI and Medicaid in mind.
- Irrevocable
Testamentary trust
Created by a will and takes effect after death — often used for minor children.
- Irrevocable
Pet trust
Sets aside money and names a caretaker for your pets. Recognized in most states.
Revocable trusts
You can generally change or cancel these while you are alive and have capacity.
- Revocable
Individual revocable living trust
One person creates the trust, usually serves as trustee, and names a successor trustee and beneficiaries.
- Revocable
Joint revocable living trust
A married couple places their assets in one shared trust and manages it together.
- Revocable
Land trust
Holds title to real estate, often for privacy. Available only under certain states’ laws, such as Illinois and Florida.
Provisions you can build into a trust
Features that can be included in many revocable and irrevocable trusts.
- Provision
Spendthrift provision
Limits a beneficiary’s ability to sell or pledge their share and generally keeps creditors from reaching it before it is paid out. State laws list exceptions.
- Provision
Staggered distributions
Pays out in stages — for example, a portion at 25, 30 and 35 — instead of all at once.
- Provision
Discretionary distributions
Lets the trustee decide when and how much to pay each beneficiary, within the guidelines you set.
- Provision
Incentive provisions
Ties distributions to milestones you choose, such as finishing school or matching earned income.
- Provision
Trust protector
Names an independent person with limited powers — such as replacing a trustee — to help the trust adapt over time.
General information, not legal or tax advice. Rules vary by state, and many of these involve tax and benefit rules that call for professional advice. Trust With Us plans to offer specific types as each one’s questions and documents are ready; send an inquiry to ask about a type.