When clients ask me if they need a will or a trust, my answer is always the same, regardless of the client’s circumstances: Yes, absolutely!

Everyone, regardless of age, employment status, family status, assets and income — yes, everyone — needs a will and a trust.

One serious challenge we all will face when we pass on is the probate process. Probate is the court process through which a deceased person’s estate will be distributed, either according to a will, or, if the person dies without a will, according to state law.

Probate is a time-consuming, expensive and often frustrating process for the family members left behind, especially if the decedent dies without a will.

The benefit of having a trust, assuming it is written properly, is that the decedent’s estate does not go through probate. Instead, the trust is the controlling instrument that directs the distribution of the decedent’s estate.

There are a wide variety of trust types, each with a specific purpose, but all are written to achieve the decedent’s final wishes for how they want their estate to be distributed.

Those specific wishes are used by the estate attorney to determine the most appropriate type of trust or trusts to achieve the desired outcome.

The following discussion includes five of the most common types of trusts that estate attorneys typically use to help clients ensure that their estate is handled the way they want it to be distributed after their death.

Revocable Living Trusts

The revocable living trust is the most common type of trust. It allows the “grantor” to place assets into a trust, act as the trustee, and maintain full control of their assets during their lifetime.

The grantor can modify, amend or cancel this type of trust at any time up until their death. Upon their death, the assets in the trust are transferred directly to the beneficiaries, bypassing the costly and public probate process discussed above.

Sometimes the assets within the trust will be placed in new, separate trusts for the benefit of individuals or charities.

As with all types of trusts, all of these details are fully customizable to meet each client’s specific needs.

Irrevocable Trusts

Once established, an irrevocable trust generally cannot be changed, amended or terminated without the permission of the beneficiaries.

Because the grantor gives up control of the assets, those assets placed in the irrevocable trust no longer belong to the grantor, but instead belong to the beneficiaries, but the way in which those assets are managed and controlled is specifically controlled by the language of the trust.

This makes this type of trust an excellent tool for shielding assets from creditors, avoiding estate taxes and qualifying for government programs like Medicaid.

Testamentary Trusts

Testamentary trusts are specifically outlined within a last will and testament and only take effect after you die.

They are frequently used to manage and distribute inheritances for minor children or dependents according to the decedent’s precise timeline (e.g., distributing funds in stages when they reach specific ages).

Special Needs Trusts

A special needs trust is specifically designed to protect a beneficiary with a disability. By placing assets in this type of trust, the beneficiary can receive financial support for their care without losing their eligibility for critical government assistance programs, like Medicaid or Supplemental Security Income (SSI).

Charitable Trusts

Charitable trusts allow the grantor to support philanthropic causes while potentially providing tax advantages and income for the grantor and their heirs.

The two main types of charitable trusts are charitable lead trusts, which pay income to a charity first, then pass the remainder to individual beneficiaries (like children and other family members), and charitable remainder trusts, which pay income to the grantor and/or their beneficiaries first, with the remainder going to charity after all of those beneficiaries have died.

These trusts are the most common that I use for wealthy clients who want to support charitable causes. These trusts are a great way to pursue legacy goals.

These trusts can be used independently, or in combination with a will and other types of trusts, and there are many other types to choose from, each with a specific estate planning purpose.

I typically combine one or more trust types with a will, sometimes called a pour-over will because the will directs that any assets outside of the trust at the time of the decedent’s death will “pour over” into a trust.

As I stated, the key benefit of trusts is that they allow the grantor to avoid probate, but there are many other valuable benefits, only some of which have been discussed here.

I advise every client I work with to have an estate plan, and to review it and update it as necessary, on a regular basis.

Thinking about what will happen to your estate after you die is never a pleasant thing to do, but, since we can’t avoid death, it is something we all need to plan for. Having a comprehensive estate plan is the best way to accomplish this goal.