Types of Trusts: The Main Kinds Explained

Trusts sound complicated because there are so many names, but they come from a few simple families. The right trust depends on what you are trying to do: avoid probate, protect a beneficiary, reduce estate tax, or provide for a loved one who needs special care. Start from the goal, and the type follows.

By Settled Estate Editorial Team

Published: July 16, 2026Updated: July 16, 2026

The Short Answer

Almost every trust is a variation on a revocable living trust (flexible, avoids probate) or an irrevocable trust (locked, but powerful for taxes and protection). The specialized trusts below are mostly irrevocable trusts built for one specific job. You do not need to know all of them, just the one that matches your situation.

The Two Big Splits

Before the specialized names, two simple distinctions explain most trusts:

Revocable or irrevocable. Can you change it? A revocable trust you control and can undo; an irrevocable trust you generally cannot, in exchange for tax and creditor benefits.
Living or testamentary. When does it start? A living trust operates while you are alive; a testamentary trust is written into your will and only comes into being at death.

Every named trust below is some combination of these, plus a specific purpose.

Trusts by Goal

If your goal is...	The usual trust
Avoid probate, keep control	Revocable living trust
Reduce estate tax or protect assets	Irrevocable trust (and its variants below)
Provide for a disabled loved one	Special needs trust
Protect an heir from creditors or overspending	Spendthrift trust
Provide for a spouse, then chosen heirs	QTIP (marital) trust
Use your estate-tax exemption now	SLAT
Keep life insurance out of your estate	Irrevocable life insurance trust (ILIT)
Set up a trust for a child at death	Testamentary trust

The Main Types

Revocable living trust

The everyday trust for avoiding probate while keeping full control.

Irrevocable trust

Trades control for estate-tax and creditor benefits.

Testamentary trust

Created by your will and begins at death, often for minor children.

Special needs trust

Holds assets for a disabled beneficiary without ending their benefits.

Spendthrift trust

Shields a beneficiary’s inheritance from their creditors and poor decisions.

QTIP trust

Provides for a surviving spouse while the first spouse names the final heirs.

Spousal lifetime access trust (SLAT)

Uses your estate-tax exemption while your spouse keeps indirect access.

Irrevocable life insurance trust (ILIT)

Owns a life insurance policy so the payout stays out of your taxable estate.

Dynasty trust

Keeps wealth in one trust across many generations, out of each heir’s estate.

Charitable remainder trust

Pays you income for a term, then gives the remainder to a charity you choose.

Not sure which fits, or whether you need a trust at all? Compare the trust route with a will in will vs. trust, and see probate vs. trust for how a trust keeps an estate out of court.

Frequently Asked Questions

What are the main types of trusts?

The everyday one is the revocable living trust, used to avoid probate. Irrevocable trusts trade control for tax and creditor benefits and come in specialized forms, such as special needs trusts, life insurance trusts, and marital trusts. Trusts are also split by when they start: a living trust works while you are alive, while a testamentary trust is created by your will and begins at death. Which you need depends on your goal.

What is the difference between a revocable and irrevocable trust?

A revocable living trust can be changed or undone at any time while you are alive, and its main benefit is avoiding probate. An irrevocable trust generally cannot be changed, and in return its assets leave your taxable estate and gain creditor protection. Most people start with a revocable trust; an irrevocable trust is a specialized tool for tax, asset protection, or benefits planning.

Which type of trust do I need?

Start from your goal. If you mainly want to avoid probate and keep control, a revocable living trust usually fits. If you want to protect a beneficiary’s inheritance, reduce estate tax, provide for a disabled loved one, or hold life insurance, one of the irrevocable trusts fits better. Because the choices carry tax and legal consequences, it is worth confirming with an estate planning attorney or financial advisor.

How many types of trusts are there?

There is no fixed number, because trusts can be drafted for many purposes and often carry more than one label at once. In everyday terms, a handful of families cover most situations: revocable living trusts, irrevocable trusts, testamentary trusts, special needs trusts, spendthrift trusts, marital and estate-tax trusts, and life insurance trusts. This guide covers the common ones and links to a full explanation of each.

Information current as of July 16, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.