Irrevocable trust

(redirected from Irrevocable Living Trust)

Irrevocable trust

A trust that is unable to be amended, altered, or revoked.

Irrevocable Trust

A trust into which a grantor deposits assets for use by a beneficiary where the terms of the trust cannot be modified or abrogated without permission of the beneficiary. That is, when a grantor sets up an irrevocable trust, he/she completely relinquishes ownership of the assets placed in the trust. As a result, an irrevocable trust is not usually considered part of the grantor's estate for estate tax purposes.

irrevocable trust

A trust in which the grantor gives up any right to amendments or termination. Income from an irrevocable trust is taxable to the beneficiary if disbursed or to the trust if not disbursed. Compare revocable trust.

Irrevocable trust.

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 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.

You typically use an irrevocable trust for the tax benefits it can provide by removing assets permanently from your estate.

In addition, through the terms of the trust you can exert continuing control over the way your property is distributed to your beneficiaries. Trusts have the additional advantages of being more difficult to contest than a will and more private.

If you establish an irrevocable trust while you're still alive, it's called a living or inter vivos trust. If you establish the trust in your will, so that it takes effect at the time of your death, it's called a testamentary trust.

References in periodicals archive ?
174,000 in November 1986; and the Arthur Floyd Beech Irrevocable Living Trust, $250,000 in April 2000.
Preferably, an irrevocable living trust is established naming the trust as the applicant/owner, premium payor, and beneficiary.
In Crummey, the settlors established an irrevocable living trust, giving minor beneficiaries annual withdrawal rights and naming them as permissible current distributees under the trustee's power to sprinkle income.
Transferring property to an irrevocable living trust in which the grantor surrenders all ownership interests excludes the corpus from the grantor's taxable estate.
Creating an irrevocable living trust in which the grantor has no beneficial interest.
Brown established an irrevocable living trust, the income from which is paid to her son for his lifetime and, on his death, to her grandchildren.
The sellers were the Arthur Floyd Beech Irrevocable Living Trust, $250,000 in April 2000; and SFS Corp.
The Johnsons bought the property from BFA Irrevocable Living Trust, led by Arthur Beech.
VBPP is in response to the devastating new form of elder financial abuse where financial predators target veterans with the sale of unsuitable deferred annuities and dangerous irrevocable living trusts in order to qualify the veterans for government benefits.
As previously stated, irrevocable living trusts are established during the life of the grantor and, as their name implies, may not be modified or revoked by the grantor.