Quiz: Can You Name That Trust?

Related: Quiz: Do You Know These Annuity Tax Facts?

Defined at its most basic level, a trust is a fiduciary arrangement that allows the designated trustee — generally a third party with respect to the owner of the assets in question — to hold assets on behalf of the trust's beneficiaries. There are many types of trust arrangements that specify how and when the trust assets pass to the trust beneficiaries, and many of these can be useful tools in the retirement and estate planning process. Unlike a will, trusts generally do not have to go through probate after the trust grantor dies — assuming the document is structured correctly. This feature can save time and expenses such as attorney fees and other court costs that can be incurred during the probate process. While they are widely acknowledged as an important planning tool, trusts can be complicated, and not all types of trusts are going to be appropriate or relevant in any given situation. As such, it is important for financial advisors to have a solid understanding of the most commonly used trust arrangements, especially when it comes to helping clients create tax-efficient inheritance plans. Advisors who want to test their trust knowledge can take ThinkAdvisor's latest quiz. Only the most trust-savvy will ace the test, but all advisors can learn some useful information about trusts by exploring the gallery. (Images by Chris Nicholls/ALM)