Understand different types of trusts.

A trust is defined as a fiduciary relationship in which a trustor, gives a trustee, the right to hold assets and/or property titles, for the benefit of a third party, known as the beneficiary. There are many different types of trusts, the two main categories being trusts and irrevocable trusts.

An irrevocable trust is the one that cannot be modified without the beneficiary's permission. The grantor transfers  assets over immediately to beneficiary. In general,  irrevocable trusts do apply to avoid all taxes, while normal or revocable trusts may not do so. In both types of trust, the trustor nmes a beneficiary at time of death.