Revocable Living Trust
ASettlor retains control during life; avoids probate at death. Tax-invisible while settlor lives.
Useless if not funded — assets must be retitled into the trustee's name during life.
A working reference for the Trust Administration course — covering estate trusts, tribal trust lands and funds, and the modern digital Trust & Safety stack. Tap any card for the lesson where it's taught in depth.
Settlor retains control during life; avoids probate at death. Tax-invisible while settlor lives.
Useless if not funded — assets must be retitled into the trustee's name during life.
Locks assets out of the settlor's estate; common for tax planning and asset protection.
'Irrevocable' is less absolute than it sounds — decanting and non-judicial settlement can modify.
Created inside a will; only effective at death and goes through probate first.
Loses the probate-avoidance advantage of a living trust.
Moves wealth between spouses with tax precision; QTIP preserves marital deduction.
QTIP election must be made on the estate tax return — easy to miss.
Uses the estate tax exemption on the first death to shelter assets from the second estate.
Portability has reduced — but not eliminated — its planning role.
Shields beneficiary distributions from creditors and from the beneficiary's own poor decisions.
Some creditors (child support, certain tort victims) can pierce spendthrift protection.
Preserves a disabled beneficiary's eligibility for public benefits while supplementing quality of life.
Direct distributions for food and shelter may reduce SSI — language matters.
Designed to be difficult for creditors to reach; domestic versions exist in select states; offshore versions in select jurisdictions.
Fraudulent transfer law and bankruptcy law can override planning if motive is suspect.
Multi-generational; perpetual where state law allows; designed to avoid transfer tax across generations.
Rule against perpetuities matters — confirm your state's statute.
Pays an income stream to a non-charitable beneficiary with the remainder going to charity.
Strict statutory percentages — get the math wrong and the IRS disqualifies the trust.
Pays charity first for a term, remainder to family — useful when asset appreciation is expected.
Grantor vs. non-grantor structure has very different income tax consequences.
Tax-advantaged transfer of expected appreciation to remainder beneficiaries.
Mortality risk — if the grantor dies during the term, the assets snap back into the estate.
Uses intentional mismatches between income-tax and transfer-tax rules to compound wealth outside the estate.
Reciprocal trust doctrine and step-transaction risk if siblings cross-fund.
Transfers a personal residence at reduced gift-tax cost while the grantor retains use for a term.
After the term, grantor must pay fair-market rent — many families forget.
Yes, really — provides for an animal beneficiary; allowed by statute in most US states.
Funding amount must be reasonable; courts can reduce excessive endowments.
Pairs with a will so residual probate assets pour into the living trust at death.
Probate is still required for the pour-over portion — true probate avoidance requires full life-time funding.
A court-imposed equitable remedy — not a planned structure; arises to prevent unjust enrichment.
Cannot be drafted in advance; only pursued in litigation.
Implied by law when an express trust fails or property is mistakenly transferred.
Often invoked in conjunction with constructive trust theories — facts matter.
ERISA-governed retirement plans operate as trusts with named fiduciaries — fiduciary law on steroids.
ERISA preemption controls — state trust law often does not apply.
Operates as a business entity in some states; common historical form for real-estate and investment pools.
Tax classification depends on facts — could be partnership, corporation, or trust for federal tax.
Securitised real estate vehicle that, if qualified, passes income through with favourable tax treatment.
Strict income, asset, and distribution tests — fall below 90% distribution and the REIT election fails.
Held by the United States for a tribe as a government; cannot be alienated without federal approval.
Acquisitions through fee-to-trust face complex 25 CFR Part 151 review.
Held by the United States for individual Indians as a legacy of the Dawes-era allotments; subject to AIPRA probate.
Fractionation makes use and lease decisions practically impossible without consolidation.
Federally administered accounts holding income from individual trust lands (leases, royalties).
Cobell Settlement scope did not retroactively fix all historical accounting errors — verify with BTFA.
Established under treaties, settlements, or claims awards to hold funds for tribal beneficiaries.
Distribution plans require Secretarial approval and tribal council coordination.
Statutory and common-law doctrine — navigable waters, shorelines, and certain natural resources are held in trust for the public.
State-by-state variation — California, Hawaii, and others have particularly strong doctrines.
Modern instruments holding crypto, private keys, NFT collections — the fiduciary problem of irreversible bearer assets.
Key custody is the entire game — lose the key, lose the corpus.
Emerging legal vehicle that holds data on behalf of a community — proposed for genomic data, sensor networks, civic data.
Legal regime is still nascent — many proposals, fewer enforced precedents.
Not a legal trust, but the public charter under which a platform commits to keep users safe — increasingly mandated by regulation.
Charter without operational follow-through is a regulatory and reputational liability.
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