Types of Trusts Revocable Can be changed, modified, amended or revoked by trustors. Irrevocable Cannot be changed, modified, amended or revoked by trustors. Inter vivos Becomes effective during the lifetime of the trustors.Irrevocable Testamentary Becomes effective at the death of the trustors. The Living Trust is a revocable inter vivos trusts. If a Living Trust has A Trust provisions, it will remain revocable at any time during the lifetime of a single trustor or during the lifetimes of both married trustors. If a Living Trust has A-B Trust or A-B-C Trust provisions, the entire Living Trust is revocable while both spouses are alive; however, after the death of the first spouse, the B Trust and (if there is one) the C Trust become irrevocable. The A Trust remains revocable during the lifetime of the surviving spouse. Can a Living Trust Solve My Problems? Advantages and Disadvantages of Naming Your Living Trust as the Beneficiary of Your Retirement Benefits such as IRAs, Pension Plans, Keogh Plans, 401(k) Plans Advantages The funds will be distributed in accordance with the terms of the Living Trust Distribution to children can be delayed Disadvantages If an entity, such as a Living Trust, is the beneficiary, all proceeds must be paid out in a lump sum. If an individual, such as a spouse or adult child, is the beneficiary, the proceeds may be paid over a period of years, allowing the beneficiary to spread and possibly reduce income taxes. There Are No Adverse Tax Consequences When You Establish a Living Trust Federal and state income tax returns are unchanged until death of first spouse. There is no reassessment of real property transferred to the Living Trust. There are no transfer taxes for real property transferred to the Living Trust. There are no gift taxes resulting from forming or funding a Living Trust. The basis of property transferred to the Living Trust remains unchanged.