There are several different kinds of trusts that serve different purposes for the settlor (the party/s who put assets into the trust).  Trust types include bare trusts, interest in possession trusts, mixed trusts, discretionary trusts, accumulation trusts, settlor-interested trusts and non-resident trusts. The most common types of trusts to be set up during a lifetime are the following.
Discretionary Trusts – This kind of trust gives the trustees the power to act at their discretion in regard to decisions about how to use, distribute and manage the assets in a trust. This is usually to protect against potential issues with beneficiaries who are not responsible enough to manage the money, or no longer have a legitimate interest in the assets; this could be to do with marital disputes etc.
Bare Trusts – These trusts are a simple way to ensure capital is protected for a younger person until they are at an appropriate age to receive it. The trustee will hold the assets of the trust until the beneficiary has turned 18 years old when they will receive the amount.
Trusts for minors – Bare trusts, and discretionary trusts (among others) can be set up so that instead of the beneficiary standing to benefit as soon as they are of legal adulthood, the settlor caps the beneficiary’s age so that they may not receive the assets intended of them before they reach a certain age, for example, 25 years old.
Personal injury trusts – These trusts exist to hold and manage the funds received as compensation due to an injury/medical condition.