Irrevocable Living Trust Definition

An irrevocable trust describes a trust that cannot be modified after it is created without the consent of the beneficiaries.

Irrevocable living trust definition.

Irrevocable trusts offer tax advantages that revocable trusts don t for example by enabling a person to give money and assets away even before he she dies. An irrevocable trust is a type of trust where its terms cannot be modified amended or terminated without the permission of the grantor s named beneficiary or beneficiaries. The trust document names a trustee who is responsible for managing the assets in the best interests of the beneficiary or beneficiaries and carrying out the wishes the creator has expressed. What is an irrevocable trust.

A trust is a separate legal entity a person sets up to manage his assets. Irrevocable living trust a trust that cannot be revoked and that takes effect during the life of the grantor. In other words it is a trust created during the lifetime of the maker that does not allow the maker to change or revoke it. An irrevocable trust is a legal agreement whose terms cannot be changed by the creator or grantor who establishes the trust chooses a trustee and names the beneficiary or beneficiaries.

The written terms of the trust agreement the trust s formation documents are set in stone with only rare exceptions. The grantor having. This means that an irrevocable living trust goes into effect during the grantor s lifetime and cannot be revoked altered or terminated. Irrevocable living trusts are created by an unconditional transfer of assets for the benefit of family members with no retention of any beneficial interest by the individual who establishes the trust.

The trust document names a trustee who is responsible for managing the assets in the best interests of the beneficiary or beneficiaries and carrying out the wishes the creator has expressed. Usually made to transfer wealth protect assets or reduce taxes. An irrevocable trust cannot be changed upon its creation in most instances. Contributions cannot be taken out of the trust by the grantor.

Alternatively the terms of a living trust go into effect while the grantor is still alive. A trust which cannot be changed or canceled once it is set up without the consent of the beneficiary.