Types of Trusts FAQs What are the two most common types of trusts? The two most common types of trusts are revocable and irrevocable trusts. A revocable living trust allows the grantor to maintain control over their assets. In contrast, an irrevocable trust prevents any changes to the trust once it is established. What are the downsides of a trust? The disadvantages of a trust include complex and time-consuming processes for establishing and maintaining it. The costs associated with creating one can also be a concern. Furthermore, trusts must still go through the legal system to remain active. How do trusts avoid taxes? Trusts can help to reduce or even eliminate estate taxes by transferring assets outside of an individual's estate. Families can preserve their wealth and pass more money to future generations without paying significant estate taxes. Who is the best person to manage a trust? The best person to manage a trust depends on several factors, such as the person's qualifications, experience, and trustworthiness. Generally, an estate planning lawyer or financial advisor is best suited to manage a trust's responsibilities. How much does a trust cost? The cost of setting up and maintaining a trust can vary significantly depending on the complexity of the trust and other factors. To get a cost estimate of a trust, you may speak with an attorney or financial advisor. There will be legal fees for creating the trust, filing paperwork with the court system, and ongoing administrative fees. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.