A Trust that is revocable is known as a "living trust".  It can be amended and revoked.

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The person who sets up the Trust is known as the "Trustor".  The person who administers the Trust is known as the "Trustee".  In a joint Trust (husband and wife) there are two Trustors and two Trustees.

 

The primary purposes of a Trust are: [1] to avoid probate; [2] to distribute asset upon death of the Trustor(s); and [3] to provide for the support and education of children.  It can also be used to minimize estate tax.

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A Trust only controls property that is in the Trust.  Real property is deeded to the Trust.  Tangible personal property can be assigned to the Trust.  A Trust can be designated as beneficiary of financial accounts such as brokerage, 401k and IRA accounts.  A Trust can also be designated as beneficiary of insurance policies.

 

In a Trust a "Successor Trustee" will be named who will administer the Trust if the Trustee or both Trustees are not living.  

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