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What kind of trusts are there?

Updated: Aug 30

There are several kinds of trusts:
 
Dynasty Trust
DAPT (and its hybrid) — Directed Asset Protection Trust
ING — Incomplete Gift Non Grantor Trust
IDG — Intentionally Defective Grantor Trust
QPRT — Qualified Personal Residence Trust
Purpose Trusts
Foreign Grantor Trusts
FAPT (Foreign Asset Protection Trust)
CRUT (Charitable Remainder Unitrust)
ILIT — Irrevocable Life Insurance Trust
Blind Trust
and many others
 
An individual or couple transferring assets into a trust would typically gift assets into a trust if the individual or couple does not reach their lifetime exclusion limit of (in 2025) $13.99 million, which applies to the vast majority of our clients. If the estate will use up the lifetime exclusion, it is recommended to create incomplete gifting trusts, which typically diminish grantor control, but maximize privacy, tax savings, and beneficiary interests.
One of the most common questions is, as the grantor, can I become a beneficiary? Indeed, the grantor may become a discretionary beneficiary, enjoying some of the equitable interest to the property gifted to the trust, but this may not be necessary.

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