Comparison Tool
Compare up to three structures
3/3 selected
| Revocable Living Trust → | Irrevocable Trust → | Business Trust → | |
|---|---|---|---|
| Typical purpose | Commonly used to organize assets, plan for incapacity, and potentially avoid probate for assets properly titled in the trust. | Used for estate tax planning, long-term beneficiary support, and, in some cases, structured asset separation. | To organize ownership, define control through trustees, and plan for continuity. |
| Revocability | Revocable by grantor | Generally irrevocable | Depends on terms |
| Who controls administration | Grantor, then successor trustee | Trustee | Trustees |
| Assets commonly held | Primary residence, Brokerage accounts, Bank accounts, Business interests, Personal property | Investment portfolios, Life insurance, Closely held business interests, Real estate | LLC membership interests, Corporate stock, Business real estate, Equipment and IP |
| Beneficiary rights | Limited while grantor is living | Defined by trust terms | Beneficial interests / units |
| Tax classification considerations | Typically a grantor trust; income reported by grantor | May be grantor or non-grantor depending on design | May be taxed as partnership, corporation, or trust |
| Creditor protection limitations | Generally none for the grantor | Varies widely by state and timing | Depends on statute and operations |
| Ongoing administration | Light while grantor serves | Moderate to significant | Significant |
| Relative complexity | Low | High | High |
| Typical professional involvement | Estate planning attorney | Attorney, CPA, possibly corporate trustee | Business attorney, CPA |