Irrevocable Living Trust Definition

An irrevocable trust is one that generally cannot be amended modified or revoked once it is created.

Irrevocable living trust definition. Irrevocable living trust a trust that cannot be revoked and that takes effect during the life of the grantor. Alternatively the terms of a living trust go into effect while the grantor is still alive. The written terms of the trust agreement the trust s formation documents are set in stone with only rare exceptions. 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.

An irrevocable trust cannot be changed upon its creation in most instances. 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. 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. 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.

Contributions cannot be taken out of the trust by the grantor. What is an irrevocable trust. The grantor having. A trust is a separate legal entity a person sets up to manage his assets.

A trust which cannot be changed or canceled once it is set up without the consent of the beneficiary. 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 trust where the terms generally cannot be modified or changed once it is finalized at least not without the permission of the beneficiary or beneficiaries of the trust. An irrevocable trust describes a trust that cannot be modified after it is created without the consent of the beneficiaries.

Usually made to transfer wealth protect assets or reduce taxes. 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.