Dynasty Trust

• A dynasty trust reserves assets for grandchildren and bypasses the parents. You can use this type trust to avoid certain estate taxes. Your children can benefit from this type of trust if you specify that any interest or other income from the principle amount in trust is available for their use.
  
  

Incentive Trust

• You can use an incentive trust if you want to place conditions on the allocation of the funds. If you want to ensure that your child graduates college, you could specify that the child cannot receive the trust until after graduation. You can also use this type of trust to discourage specific things. You could specify that the trust cannot be awarded if the child gets married before a certain age.
  
  

Protective Trust

• A protective trust is a type of asset-protection trust. With this type, you place your property in a trust for your children but you keep the use of it until your death. A protective trust provides protection for your property from creditors for debts you establish after you form the trust.
  
  

Revocable Trust

• You can change or revoke this type of trust at anytime as long as you remain mentally capable of understanding what you are doing. You may choose a revocable trust instead of a will because with the trust, your heirs can avoid probating your estate. Avoiding probate will lessen the costs to your estate and finalize your affairs more quickly.