LawMeaning

Irrevocable Trust

In one sentence

A trust that cannot be changed, modified, or terminated once created without beneficiary consent.

Plain English

Once an irrevocable trust is established and funded, the grantor loses the power to alter its terms, take back the assets, or change who receives them. This permanence is actually a feature: because the grantor no longer controls the assets, they may not be counted in the grantor's taxable estate, potentially saving on estate taxes. However, the loss of control is significant, so irrevocable trusts are typically used for specific goals like protecting assets from creditors or reducing taxes.

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Example

David creates an irrevocable trust and transfers $1 million into it for his children's benefit. Five years later, David's financial situation changes and he wants to access the money, but he cannot—the trust terms cannot be modified without his children's agreement, and the assets are no longer his property.

Used in a sentence

“An irrevocable trust offers strong asset protection but requires careful planning before implementation.”

Related terms

Revocable Trust
A trust that the grantor can modify, amend, or terminate during their lifetime.
Grantor
The person who creates a trust and transfers property into it.
Trustee
The person or institution legally responsible for managing assets held in a trust.
Beneficiary
A person or organization entitled to receive money or property from a trust, will, or insurance policy.
Trust Instrument
The legal document that creates a trust and outlines how assets will be managed and distributed.
Probate
The court process of validating a will and distributing a deceased person's estate.
Intestate Succession
The legal process of distributing a deceased person's property when they leave no valid will.
Elective Share
A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.