What is an Irrevocable Trust?

A living trust can be an irrevocable trust of a revocable trust. Then, what is an irrevocable trust? This section will explain an irrevocable living trust. We explain irrevocable trusts, compare revocable vs. irrevocable trusts and answer the question 'what is an irrevocable trust?' We also include a mini irrevocable trust FAQ in this section.

Definition of an irrevocable trust: what is an irrevocable trust?

An irrevocable trust is a trust that cannot be revoked or changed by anyone. That includes the original owner of the irrevocable trust who set up the trust (trustor), trustee, or the beneficiary.

What is an irrevocable trust used for?

Irrevocable trusts are often used for asset protection to protect the assets in the irrevocable trusts against lawsuits. Irrevocable trusts are also used for gift giving and estate planning.

Explain an irrevocable living trust

How does an irrevocable trust work? Once the assets are transferred to the irrevocable trust, the assets must remain in the irrevocable trust and in the control of the trustee. The irrevocable trust FAQ below will explain irrevocable trusts.

What can the trustee do to the assets in the irrevocable trust?

The trustees of irrevocable trusts must follow the original irrevocable living trust instructions regarding the elections for distributions from irrevocable trusts to the beneficiaries.

Can creditors get assets from irrevocable living trusts?

Generally creditors cannot access assets in the irrevocable trusts. Irrevocable living trusts have to meet certain requirements to become irrevocable trusts.