This legal document comes in many forms. Two types frequently utilized are: Testamentary and Living Trust.
A Testamentary Trust does not come into effect unless the will comes into effect. If your will is never probated, the testamentary trust never comes into effect. After the grantor of the trust has died, several types of documents must be filed with the Probate Court. Some people like the fact that the documents are filed with the Probate Court because it is a well established procedure and the beneficiary can go to Probate Court to get copies of the documents filed with the court. Others like the Testamentary Trust because it efficiently combines the will and trust together into one document which usually makes it shorter than the two separate documents (a Will plus the Living Trust).
On the other hand, others do not like the fact that the Testamentary Trust must go through Probate Court for two reasons: 1) fear of the potential cost and delay associated with going through probate and 2) fear that inappropriate persons could view the probate court records.
A Living Trust comes into effect during your lifetime. Many people like this type of trust because it allows them to place assets in the trust during their lifetime. It is frequently used to allow the passing of assets without going through Probate Court. The Living Trust may be set up as an agreement between two living persons promising to use the assets for the benefit of third person. Many Living Trusts are set up so that the person creating the trust has unlimited control over the trust during their lifetime and a person that they "trust" has control over how to use the assets to assist the beneficiaries after their death.
After a decision is made which type of trust is desired, the next question to be decided is how the distributions are to be paid out and when the trust is to be terminated. Once these decisions are made, the trust is modified accordingly.
There are many more types of provisons that can be included in a trust designed to meet each family’s need.