what is an irrevocable trust

An irrevocable trust is a type of trust that cannot be modified, amended, or terminated without permission from the grantors beneficiaries or by court order. Once established, the grantor forfeits ownership and authority over the trust and is unable to make any changes or amendments to the terms of the trust without permission from the beneficiary or a court order. The purpose of an irrevocable trust is to move the assets from the grantors control and name to that of the beneficiary, reducing the value of the grantors estate. Irrevocable trusts are generally set up to minimize estate taxes, access government benefits, and protect assets. They are especially useful to individuals who work in professions that may make them vulnerable to lawsuits, such as doctors or attorneys, as assets held in an irrevocable trust are safe from legal judgments and creditors since the trust will not be a party to any lawsuit. There are many kinds of irrevocable trusts, and an estate planning attorney can help determine what works best for a specific situation and help meet estate planning goals.