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There are two types of trusts: a living trust and a testamentary trust. A living trust, also known as an “inter vivos trust,” is a trust set up while the Grantor is still alive. The Grantor creates a living trust to avoid probate upon the Grantor’s death. A testamentary trust is a trust that is set up in a will and is only effective upon the death of the grantor.
Living trusts can be either revocable or irrevocable. A revocable trust can be amended, changed, or canceled by the Grantor at any time before the Grantor’s death. An irrevocable trust cannot, without the beneficiary’s permission, be amended or changed in any way after its creation. The distinction between revocable and irrevocable trusts is only valid for living trusts, testamentary trusts are always revocable because they do not become effective until after the death of the Grantor. As such, the Grantor can revoke the trust at any time during the Grantor’s lifetime.