Wills, Trusts & Estates

minimize administrative costs associated with probate and to provide centralized
administration of a person's final affairs after death.
Secret Trust: A post mortem trust constituted externally from a will but imposing
obligations as a trustee on one, or more, legatees of a will.
Semi-Secret Trust: A trust in which a will demonstrates the intention to create a
trust, names a trustee, but does not identify the intended beneficiary.
Simple Trust:
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In the US jurisdiction this has two distinct meanings:
• In a simple trust the trustee has no active duty beyond conveying
the property to the beneficiary at some future time determined by
the trust. This is also called a 'bare trust'. All other trusts are special
trusts where the trustee has active duties beyond this.
• A simple trust in Federal income tax law is one in which, under the
terms of the trust document, all net income must be distributed on
an annual basis.
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In the UK a bare or simple trust is one where the beneficiary has an
immediate and absolute right to both the capital and income held in the
trust. Bare trusts are commonly used to transfer assets to minors.
Trustees hold the assets on trust until the beneficiary is 18 in England and
Wales, or 16 in Scotland.
Special Trust: In the US, a special trust, also called complex trust, contrasts with
a simple trust (see above). It does not require the income be paid out within the
subject tax year. The funds from a complex trust can also be used to donate to a
charity or for charitable purposes.
Special Power of Appointment Trust (SPA Trust): A trust implementing a
special power of appointment to provide asset protection features.
Spendthrift Trust: It is a trust put into place for the benefit of a person who is
unable to control their spending. It gives the trustee the power to decide how the
trust funds may be spent for the benefit of the beneficiary.
Standby Trust (or 'Pourover Trust)': The trust is empty at creation during life
and the will transfers the property into the trust at death. This is a statutory trust.
Statutory Business Trust: A trust created pursuant to a state's business trust
statute used primarily for commercial purposes. Two prominent variants of
Statutory Business Trusts are Delaware statutory trusts and Massachusetts
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