Types of Trust Funds in Canada:Testamentary trust. This type of trust is usually created upon the death of a person. It is either formed through a will or by a court order. The idea is to preserve the estate in a trust while it is determined how the deceased person’s assets will be taxed and distributed. Generally speaking, a testamentary trust is not actively created, but rather it is a result of the death of a person with an estate. Inter-vivos trust. An inter-vivos trust is any type of trust that isn’t a testamentary trust. These can be formed by a living individual or family. They can be manipulated to achieve certain financial outcomes. There are a ton of different types of inter-vivos trusts, such as alter ego trusts, real estate investment trusts (REITs), employee trusts and more.