A Trust is a legal entity created under state law and is a fiduciary relationship in
which one party, known as a Trustor, gives another party, known at the Trustee, the
right to legal ownership of assets (including property) for the benefit of another.
The most common types of Trusts are Irrevocable and Revocable Trusts:
- Irrevocable Trust - The Trustor has no control of the trust (the trust cannot be
repealed or annulled) and the trust will pay tax.
- Revocable Trust - A revocable trust is a trust that may be altered or terminated
during the Trustor's lifetime. Since the trust may be altered at any time until
the Trustor's death, it is considered part of the Trustor's estate and is
subject to taxation.