There are several different Trusts that are used for different situations. Some of the Trusts are:
Revocable Living Trust:
A Trust established by you during your lifetime which may have assets transferred to the Trust during your lifetime or at death. The Trust is in your complete control and may be amended or revoked as long as you are competent. This Trust distributes the assets in the Trust at your death without the Probate Court being involved.
Joint Revocable Living Trust:
The Joint Revocable Living Trust is the same as the Revocable Living Trust except it is a Living Trust for a married couple. Separate trusts are not necessary for each spouse. Usually, the surviving spouse may amend or revoke the Trust after the death of the first spouse.
The Trust that is irrevocable once it is signed. This Trust is used to transfer assets so the assets are not countable when a Medicaid application is prepared and filed. This Trust must be funded at least five years before a Medicaid application is filed with the State of Michigan.
A Discretionary Trust is prepared for a beneficiary who has special needs and may be receiving “needs based benefits”, or may be entitled to “needs-based benefits” in the future. If the beneficiary receives your assets without the Discretionary Trust, the beneficiary will lose the needs-based benefits. A Discretionary Trust allows you to set aside assets for the beneficiary without the beneficiary losing the needs-based benefits.
A Testamentary Trust is a Trust established within a Will. This Trust is funded with the assets of a beneficiary who is a beneficiary under a Will and who has not attained the age you have selected for them to receive the assets. This Trust also has a special use in Medicaid Planning.
This Trust may be in a Living Trust or Will. The purpose of this Trust is to provide management and control over the assets of a beneficiary until they attain the age you select. This Trust allows time for the beneficiary to gain maturity and experience in handling financial matters.