Beginner FriendlyRevocable Living Trust
In Leaman/Layman terms: The everyday family trust you can usually change while you are alive.
Best used for: Avoiding probate, organizing family inheritance, incapacity planning, and keeping things easier for your family.
Example: Ted and Sarah want their house, bank accounts, tools, and family keepsakes to pass to their children without making the family figure everything out in court.
Pros- Flexible and changeable
- Common family planning tool
- Can help avoid probate when funded
- Keeps instructions organized
Cons- Must be funded to work well
- Usually does not protect assets from your own creditors
- May still need attorney review
Pet Trust
In Leaman/Layman terms: A care plan and money set aside for your animals if something happens to you.
Best used for: Pets, livestock, horses, service animals, or animals needing ongoing care.
Example: You want your dog, two cats, and horse cared for by a trusted person, with money set aside for food, vet bills, boarding, and emergency care.
Pros- Simple and practical
- Gives clear care instructions
- Names caregiver and backup caregiver
Cons- Requires reliable caregiver
- Needs clear leftover-money instructions
- State rules may vary
Spendthrift Trust
In Leaman/Layman terms: A trust that protects a beneficiary from receiving too much too fast or being pressured by others.
Best used for: Young beneficiaries, financially vulnerable beneficiaries, addiction concerns, creditor pressure, or family conflict.
Example: You love your son, but he is terrible with money. Instead of handing him everything at once, the trustee can pay for rent, school, medical needs, or monthly support.
Pros- Controls timing of distributions
- Gives trustee oversight
- Can protect inheritance from bad decisions
Cons- Needs careful wording
- Trustee may face family pressure
- Beneficiary has less control
Special Needs Trust
In Leaman/Layman terms: A trust designed to support someone with a disability without accidentally disrupting benefits.
Best used for: A beneficiary who receives or may receive SSI, Medicaid, housing help, or other public benefits.
Example: Your daughter receives Medicaid and SSI. You want money available for quality-of-life support without accidentally giving her direct assets that could cause a benefit problem.
Pros- Supports a vulnerable beneficiary
- Can preserve benefit planning when correctly drafted
- Creates long-term care instructions
Cons- Needs attorney review
- Benefit rules are strict
- Trustee must understand limits
Irrevocable Trust
In Leaman/Layman terms: A stronger lockbox where you usually give up control after assets go in.
Best used for: Advanced asset protection, tax planning, Medicaid planning, or long-term wealth transfer.
Example: A family wants to move certain assets outside direct personal ownership for a specific legal or tax planning reason.
Pros- Can be powerful when used correctly
- May help with protection or tax goals
- Creates stronger separation from personal ownership
Cons- Hard to change
- Mistakes can be expensive
- Attorney and tax review strongly recommended
Asset Protection Trust
In Leaman/Layman terms: A trust designed to protect assets from certain future risks when planned correctly and early.
Best used for: Business owners, professionals, high-liability situations, or long-term wealth preservation.
Example: A business owner wants to plan ahead before problems arise, not after a lawsuit or claim already exists.
Pros- Can separate assets from direct exposure
- Useful for risk planning
- Can support long-term family wealth planning
Cons- Very state-specific
- Can fail if done after a known claim
- Requires attorney review
Charitable Trust
In Leaman/Layman terms: A trust that supports a charity or cause, sometimes alongside family planning.
Best used for: Legacy giving, charitable goals, tax-aware planning, or mission-based estate planning.
Example: You want part of your estate to support veterans, a church, animal rescue, or another cause after you pass.
Pros- Supports a mission
- Can create a legacy
- May have tax planning benefits
Cons- Needs careful charity details
- Tax review recommended
- More complex than a basic family trust