Given the flexibility that comes with trust planning, no single vocabulary has emerged from describing the different types of trusts. The same trust with the same function can go by different names because different estate planners have created multiple monikers. Here is an introduction to some of the types of trust that you might want to explore.

Type of


Who is


Unique Benefits
Revocable living trust Yourself, or yourself and your spouse  Professional asset management, continuous financial protection upon incapacity
Marital deduction trust Your spouse, after your death Estate tax deferral; spouse receives all income at least annually
Qualified Domestic Trust (DQOT) Your noncitizen spouse, after your death Marital deduction; spouse receives all income at least annually
Family trust Your children, after your death Trustee may be given discretion over trust assets, protecting them from creditor claims
Qualified Terminable Interest Property trust (QTIP trust) Your spouse and children from an earlier marriage For “blended families” preserves everyone’s inheritance
Grantor Retained Annuity Trust (GRAT) Yourself and your heirs Leverage federal transfer tax exemptions for larger tax savings
Special needs trust A disabled individual May provide for enhanced quality of life while permitting continued government benefits
Charitable remained trust Yourself or other individuals for some time, and a charity in the future Income interest may be a percentage of the trust’s value or a fixed dollar amount; income and gift tax savings possible


Learn more about the flexibility of trusts, and which option or options best fit your scenario. Talk to an American Bank & Trust wealth management specialist.


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