- Are you wondering that type of trust you need?
- Are you confused by the different types of trust?
Are you wondering what the different type of trusts there are? Are you trying to determine the type of trusts by their trust names? The trust names are often a good place to start when trying to determine the type of trust.
“Irrevocable Trust” – If the trust has the words “Irrevocable”, then this most likely means the trust is an irrevocable trust. With irrevocable trusts, the terms of the trust cannot be changed. This usually means the beneficiaries are set and cannot be changed. For more information on irrevocable trusts, click here.
“Revocable Trust” – If the name of the trust includes the word, “revocable”, then this means the trust most likely started out as a revocable trust, but you will still have to look more to see if it is a revocable trust now. This is because many trusts start out as revocable trust, but then a triggering event occurs within the terms of the trust that cause it to change into an irrevocable trust. The most common “triggering event” that causes a trust to go from a revocable to irrevocable trust is the death of one of the Trustors.
“Family Trust” or “Living Trust” – If the name of the trust includes the words “family” or “living” and both Trustors are alive, then the trust most likely is a revocable trust. If one or more of the Trustors has passed away, then the trust has most likely become partially irrevocable. If both trustors has passed away, then the chances that the trust is irrevocable are even greater.
If you are wondering what name to use in your trust, there are very little restrictions as to your naming choices in California. There are certain words you should avoid so as to not cause confusion between other entity types, such as “Corporation” or “LLC”. Additionally, you should not try to make your trust sound like a government organization. For instance, you probably dont want to use the name, “Federal Housing Authority Trust”.
If your trust is going to be a revocable trust for the benefit of your family or friends, you most likely want to use a trust name such as, “Last Name Family Trust” or “Last Name Living Trust”.
It is often very common to add the creation date to the name of the trust. For instance, many trusts are named, “Last Name Family Trust dated October 10, 2019” or “Last Name Living Trust dated October 10, 2019”.
Ultimately, the choice of name for your trust is up to you. There are few, if any restrictions. Also, it is not entirely possible to determine the type of trust from its name alone. You would need to read the trust and know what events have taken place in order to correctly determine the status of a trust. If you need help determining the status of a trust, call us at 800-501-9620. We are here to help.