What is a trust?

Although every estate plan is as unique as the individual creating the plan, there is a good chance you will include a trust in your estate plan given how popular they are. At its most basic, a trust is a relationship whereby property is held by one party for the benefit of another. Trusts are broadly divided into living trusts and testamentary trusts with the former activating during the lifetime of the Settlor (the creator of the trust) and the latter typically being activated at the time of the Settlor’s death by a provision in the Settlor’s Will. Living trust can be further sub-divided into revocable and irrevocable living trusts while a testamentary trust is always revocable because a Will is always revocable.