QUESTION
What is an irrevocable trust?
ANSWER
An irrevocable trust is a legal arrangement where you permanently transfer assets out of your ownership and control, placing them under a trustee’s management for your chosen beneficiaries. Unlike a revocable trust, its terms generally can’t be changed or undone once established.
Because you no longer legally own the assets, they’re typically removed from your taxable estate and shielded from creditors and lawsuits. The trustee manages and distributes assets according to your instructions, which can help minimize estate taxes, protect wealth for heirs, or qualify for certain benefits.
Since it’s permanent, consult an estate planning attorney before creating one.