·   Revocable living trusts (also known as inter vivos trusts) – In these types of trusts, the settlor (trust creator) may decide to maintain control of the assets by naming him/herself as the trustee.  The settlor must fund the trust by transferring title of assets to the trust.  During the settlor's lifetime, he/she may revoke the trust at anytime for any reason, hence the name.  Upon the settlor's death, the trust will dictate the disposition of the remaining assets.  Additionally, assets within the trust at the time of the settlor's death will generally avoid probate.  A variation of this type of trust, known as a "pour over" Will, distributes assets to an existing revocable trust upon the death of the settlor. However, "pour over" assets must go endure the probate process.

·   Irrevocable trusts – True to their name, these types of trusts are not freely revocable.  In this type of trust, the setllor has no interest in the trust assets; therefore, the assets will not be included in the settlor's gross estate.  This may be important in large estates for the purpose of limiting the estate tax and preventing creditor's claims.

·   Testamentary trusts – The terms of this type of trust are expressed within a Will.  The trust is funded with the property identified in the will at the time of the decedent's death.  These assets will have to pass through the probate process.

What are some other types of trusts?
There are many different types of trusts with many specific purposes.  Some examples include: QTIP trusts, credit shelter trusts, life insurance trusts, generation skipping trusts, special needs trusts, family pot trusts, sprinkling trusts, Crummey trusts, charitable trusts, etc.