Revocable trusts are more flexible than irrevocable trusts

Revocable trusts are typically subject to estate taxes

Irrevocable trusts, however, are not. Both types help beneficiaries avoid probate, the lengthy court process that administers a person’s estate upon death.

A revocable living trust is the most common type of trust

With a revocable trust, the grantor can alter or dissolve the trust at any time. A living trust, is one that the grantor creates during their lifetime (as compared to a “testamentary” trust, which a grantor establishes in their will to be read after death).

Certain trusts can bypass estate taxes—but the terms can't be changed

Putting money and other financial assets in an irrevocable trust is one way to avoid estate taxes. There are some cons to this trust, like the fact that you can't change the terms of the trust or assets in the trust after they're set. But a big pro is that any financial assets in an irrevocable trust aren't considered part of your estate, meaning they aren't subject to death taxes.

Explore a visual of 16 different types of trusts

While all trusts fit into one of two categories (revocable or irrevocable), many other types of trusts exist for more specific circumstances. Think: pet trusts and special needs trusts.

It’s not always clear whether a will or a trust is the best for an individual estate

While trusts are typically more expensive to set up than a will, they also help beneficiaries avoid specific types of taxes, depending on the type of trust. Wills typically go through probate, whereas trusts do not. An article offers a list of questions to consider when deciding between the two.

In a trust, the trustee is often the same person as the beneficiary

While a trustee is supposed to be a neutral third party whom the grantor appoints to manage their trust, they can be (and often are) the same person as the beneficiary. While that seems counterintuitive, trustees have a legal obligation to manage assets impartially and in the trust’s best interest.

Contrary to popular belief, trusts aren’t only for the wealthy

Trust funds can be expensive to set up, given that their establishment often requires paying a lawyer for their time. But for many, that expense might be worth it depending on the complexity of the assets and the ability to specify when, where or how an estate’s assets are used.

Both individuals and businesses can establish trusts

Business trusts can allow trustees to manage a beneficiary’s stake in a business, and more. There are many different specific types of business trusts.

Explore the key differences between 401(k) plans and IRAs

A 401(k) is employer-sponsored, may include matching contributions, and allows higher annual contributions (up to $23,000). An IRA is self-managed, offers greater control over investments, and has lower contribution limits ($7,000). Both plans come in traditional and Roth options, but income caps may limit IRA choices, while 401(k)s have no such restrictions.

7 things to know about inherited IRA rules

An inherited IRA is any kind of IRA or 401K plan you inherited from someone after they’ve died. Since there are different tax advantages for each type of retirement account, the rules you have to follow widely differ based on the account, your relationship to the deceased, and how you want to use the money. Here are the seven things you must know to navigate an inherited IRA.

Real estate investment trusts help give portfolios more exposure to real estate

Also known as a REIT, a real estate investment trust is a type of company that invests in a portfolio of real estate, such as apartment buildings or malls. Investors can buy shares of the REIT to participate in its portfolio’s gains and losses.

When compared to stocks and bonds, alternative investments are often less regulated

Alternative investments are also often less liquid than traditional investments; they carry unique risk, return, and tax considerations.

529 plan advantages include state-specific tax exemptions and more

For National 529 Day, celebrated on May 29, an expert explained the basics of 529 accounts. Outside of forced education savings, advantages include flexibility around beneficiaries (they can be changed easily), how unused funds can be rolled into a Roth IRA, and state-specific tax exemptions.

Whole and universal life insurance are two types of permanent life insurance

While they both stick with you for your whole life, they vary when it comes to added benefits, overall cost, and changes you can make to an active policy. The biggest difference between the two is that universal insurance lets you make changes to an active policy, whereas whole insurance is fixed.

You can draft a will designed to block AI resurrection—but the request may be ignored

Ars Technica spoke with legal experts about how—and if—people could design their wills to prevent AI resurrection. Though this is not yet a common request, one lawyer suggested that people worried about living on in an AI format can draft a power of attorney and a will that prevents those in charge of one's estate from submitting any texts, voice, image, writings, or other personal information to any AI tools.

IVF was long considered controversial and ethically dubious

In spite of its wide acceptance as a form of reproductive assistance today, and its role in helping millions of people have children, in vitro fertilization was once considered a controversial threat to society. One magazine went as far as to describe the procedure as "the biggest threat since the atom bomb."

Novels sometimes use unreliable narrators

When we read a book, we’re effectively forced to take the narrator’s word for what’s unfolding. But what if that narrator has a biased take on those events? What if, in a general sense, that narrator can’t be trusted? Enter the unreliable narrator, a strategic way of shaping a story that adds an additional layer to the narrative.

The benefits of cryptocurrency and blockchain technology

At the root of cryptocurrencies' allure is blockchain technology, an innovation bringing profound transformations to industries, especially the financial industry. This simple article breaks down the difference between cryptocurrencies and blockchain as well as the benefits of each.

Investments into an annuity are typically locked up during the accumulation period

For one year, most annuitants won’t be able to withdraw any funds. After that, most contracts allow them to take out up to 10% of their accumulated total annually before fees—called surrender charges—are applied to their withdrawals.

Escrow is when a third party holds on to the money during a financial negotiation between two other parties

In the homebuying process, escrow typically happens while the buyer and the seller negotiate the terms of the sale. Escrow accounts can also be used to hold a buyer’s money when making payments on their loan.

The pros and cons of long-term renting

Soaring mortgage rates and inflated home prices have led more consumers to opt to rent instead of buying, becoming “forever renters.” This article weighs the costs and benefits of renting instead of buying. Benefits include flexibility, less upkeep, and potentially lower expenses, while downsides include less stability and reliance on landlords. Read this article and decide whether homeownership or renting is the choice for you.

The Supreme Court has greatly expanded executive power in recent years

In Trump v. United States, the court ruled that a former president enjoys absolute immunity for "official acts" in his constitutional core powers. In Trump v. CASA, Inc., the court limited federal courts' ability to block executive enforcement through nationwide injunctions—decisions that shifted power toward the executive branch.

The Constitution is difficult to amend

Amended just 27 times in more than 230 years, the US Constitution is deliberately hard to change. This animated video from TED-Ed explains why the amendment process is so complex and what that rigidity means in practice.

Ethereum’s biggest risks and top criticisms

As it evolves, critics say Ethereum’s constant changes make the platform overly complex and fundamentally less secure. They also say the Ethereum Foundation and a handful of developers wield too much control over the crypto platform, and that gas fees are prohibitively expensive. Some criticisms are addressed in Ethereum’s roadmap, but others strike at the crypto platform’s core. Go deeper on why here.

Going public has pros and cons for a company

An organization transfers ownership over to new shareholders—who could be anyone—following its IPO date. However, going public expands a company’s ability to increase funding and grow its business. This guide dives into the advantages and disadvantages of going public, and what those pros and cons can mean for investors.

Iran's Revolutionary Guard Corps is independent of Iran's regular army and is one of the most powerful and influential military-political organizations in the Middle East.

Despite being favored by 87% of Americans, Congress does not have term limits.

Indefinite cloning of some endangered species may not sustain their longevity because cloning success rates decrease as genetic mutations accumulate.

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Volcanoes 'die' when their supply of magma runs out, if they are shifted away from their underlying magma reservoir, or if they get clogged by collapsing or their magma cooling back into rock.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

Corals are themselves not coral reefs—the term refers to the tiny marine invertebrates that build the rigid reef.

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

The original copy of the Declaration of Independence is not a pristine document, and even features a smudged anonymous handprint in the bottom left corner.

Recent research found that the brain doesn't seem to massively rewire following amputation—upending earlier beliefs about the cause of phantom limb pain.

Frank Lloyd Wright's houses are historically hard to sell because they're old, subject to local landmark commissions, and often unfashionable

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

Objects can be 3D printed with light by projecting 2D computerized tomography (CT) scans onto rotating cylinders of resin, which solidify upon exposure.

Hurricanes, which rely on air consistently spinning in the same direction, cannot cross the equator because air curves in opposite directions north and south of it.

See this overview of the firework rules across all 50 states, ranging from a complete ban on non-professional fireworks in Massachusetts to states with more lax rules like Indiana.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

The syncytiotrophoblast is the outer layer of the placenta and the largest human cell, spanning an area about twice that of a king-sized bedsheet.

Double world record holder Hunter Ewen helped conquer his fear of balloons, called globophobia, by training to win Guinness World Record titles for balloon inflation.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Explore chaos in this simulation of two double pendulums, where small differences in the release angles produce wildly different outcomes.

Famed poet TS Eliot rejected the manuscript for George Orwell's political fable 'Animal Farm,' writing that its criticism of authoritarianism was not 'the right point of view.'