Quora Answer: How Do You Structure a Living Trust?

The following is my answer to a Quora question: “How did you structure your living trust?” 

There are two main kinds of living trusts: revocable and irrevocable.  In a revocable trust, you have direct control of your assets.  However, the trust is not considered a distinct entity, and is still subject to probate and creditor seizure.  In an irrevocable trust, you do not have direct control over the trust.  The appointed trustees do.  However, since the trust is considered a distinct legal entity from you, it is protected from creditor action, it does not undergo probate, the assets do not have to be declared and you mitigate your tax liability.  In summary, you structure your trust to either choose convenience or protection.