Austin Probate Lawyer

Types of Trusts

If you have heard or been interested in creating a trust, you may have some questions about the many types of trust fund that can be created. By definition, a trust is a type of legal and economic arrangement in which one person manages an account for another person’s benefit.

There are as many types of trusts as there are reasons for opening a bank account. Here are a few examples of common trust funds:

Constructive Trust

A constructive trust is set up for someone who had a something bad happen to them by another person, and the perpetrator is forced to set up the trust for the victim’s continued benefit.

Express Trust

An express trust is the type of trust that is willingly set up by a living person, for the benefit of someone else, after the trust owner dies. For example, grandparents can set up trust fund for their grandchildren’s education or a wealthy philanthropist can set up a trust fund for an important cause that they champion.

Incentive Trust

Similar to an express trust, a person can set up this fund to encourage good behavior in its beneficiary, or can discourage bad behavior, with the fund only being granted to them if they fulfill their agreement with the trust fund’s maker.

Talk to an Austin Probate Lawyer

If you would like more information on trusts and will, or need legal representation, contact the Austin probate lawyers of Slater, Kennon, & Jameson, LLP at 512-338-1100 to speak with a trusted attorney today.