What Are the Different Types of Trusts?
Planning for the future can feel overwhelming, especially when you’re trying to protect the people who matter most. Many families worry about what will happen to their assets, how their loved ones will be treated, and whether their wishes will be honored.
Those concerns are completely normal, and you’re not alone in facing them. Trusts can offer peace of mind, but only when you know which type fits your goals and circumstances.
At Zapolis and Associates PC in Illinois, we help clients and their families throughout Mokena, Will County, Kankakee County, Cook County, and nearby communities create trusts that reflect their needs and values.
If you’re considering a trust, we’re here to help you through your options so you can move forward with confidence. Reach out to us to learn more about how we can support your planning.
Revocable Living Trusts
A revocable living trust is one of the most commonly used planning tools. Many people choose this type because it gives them flexibility throughout their lifetime.
With a revocable living trust, you can make changes as your life evolves—whether you get married, have children, acquire new property, or decide that your original plan no longer fits your wishes. You stay in control.
Revocable living trusts also help families avoid probate, which can save time, preserve privacy, and reduce stress for your beneficiaries when you’re gone. Because the trust becomes irrevocable after your passing, your instructions remain in place, and your assets are distributed according to your plan.
Benefits of revocable living trusts include:
Flexibility: You can amend or revoke the trust whenever your circumstances change.
Control: You can manage the trust during your lifetime and choose a successor trustee who’ll take over later.
Privacy: Your assets pass outside of probate, keeping your affairs out of public court records.
Continuity: If you become incapacitated, the successor trustee can step in to manage your affairs without the delay of a guardianship process.
A revocable living trust is often an excellent starting point for people who want a reliable yet adaptable planning strategy. Before moving on, it’s helpful to remember that while revocable trusts offer flexibility, they don’t provide asset protection during your lifetime. That’s where other types of trusts come into play.
Irrevocable Trusts
Irrevocable trusts serve a different purpose than revocable living trusts. Once created, they generally can’t be altered. This might sound restrictive, but the permanence is what makes them powerful for protecting assets, lowering tax exposure, and preparing for long-term planning needs.
Many clients use irrevocable trusts when they want to separate certain assets from their personal ownership—either to shield them, plan for future care expenses, or set aside resources for loved ones on long-term schedules.
Because the trust, not you, is considered the owner of the assets, these trusts can open opportunities that revocable trusts don’t. Before looking at specific types of irrevocable trusts, it helps to understand the broad advantages they offer and why so many families include one in their planning.
Common goals of irrevocable trusts include:
Asset protection: Assets in an irrevocable trust generally aren’t treated as personally owned by you.
Estate-tax reduction: Certain irrevocable trusts help reduce the size of your taxable estate.
Long-term care planning: Some people use this type of trust to structure their assets for future planning needs.
Structured gifting: Irrevocable trusts help you give to loved ones while maintaining long-term control over how and when distributions occur.
Irrevocable trusts come in several forms, and each one serves a particular purpose. It’s important to consider whether long-term stability or long-term flexibility matters more for your unique goals.
Specialized Trusts for Children, Beneficiaries With Disabilities, and Loved Ones Who Need Protection
Some trusts are created specifically for individuals who need extra protection or long-term oversight. These trusts focus on providing financial support while shielding the beneficiary from losing important assistance or mismanaging funds.
Families throughout Illinois often come to us when they want to make sure vulnerable loved ones are cared for long after they’re gone. These trusts offer both structure and compassion.
Common types of protective trusts include:
Special needs trusts: These allow you to provide financial support to a beneficiary with disabilities without disrupting eligibility for government benefits.
Spendthrift trusts: These prevent beneficiaries from accessing or misusing the trust funds all at once, giving the trustee authority to distribute funds responsibly over time.
Minor’s trusts: These hold assets for children until they reach an age you choose, providing financial support along the way if needed.
These trusts are often a lifeline for families who want to plan responsibly while honoring their loved one’s unique circumstances. Before moving forward, it’s important to think about the long-term guidance and protection your beneficiary may need, so you choose the option that fits best.
Charitable Trusts and Testamentary Trusts
Charitable trusts let you support causes you care about while creating financial benefits such as tax advantages or ongoing income. They’re a meaningful way to blend philanthropy with long-term planning, whether you’re supporting a nonprofit, faith-based organization, or another charitable mission.
Two common charitable trust options include:
Charitable remainder trusts: Provide income to you or another person for a set period before the remaining assets pass to the charity.
Charitable lead trusts: Give income to a charity first, with the remaining assets going to your chosen beneficiaries later.
Charitable trusts allow you to support your values while still benefiting those you care about. The right option depends on your goals and how you want your gift structured.
A testamentary trust is created through your will and doesn’t take effect until after probate. This makes it useful if you want to include long-term instructions for beneficiaries without creating a separate trust during your lifetime.
These trusts are often chosen for children, young adults, or beneficiaries who need financial oversight. Because the trust is part of your will, you can revise the terms as your circumstances change.
Advantages of testamentary trusts include:
Control through your will: Leave detailed instructions without forming a separate trust.
Structured support: Decide how and when beneficiaries receive funds.
Flexibility during your lifetime: Update your will as needed.
A testamentary trust is a straightforward option if you prefer to keep everything in one document and are comfortable with the probate process.
Contact Our Lawyers for Trust Planning Help
Choosing the right type of trust can feel like a big decision, but you don’t have to make it alone. At Zapolis and Associates PC, we help clients and their families throughout Mokena, Illinois, including Will County, Kankakee County, and Cook County, create trusts that reflect their goals, values, and hopes for the future.
If you’re ready to explore which trust fits your needs, we’re here to guide you through each step. Reach out to our experienced estate planning lawyers today to get the support you need.
