Irrevocable trust

(redirected from Irrevocable Trusts)

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 ?
Decanting is a way of dealing with provisions in irrevocable trusts that no longer carry out the settlor's intent, are impractical to administer under changing circumstances, or would not be in a beneficiary's best interest, the MBA committee adds.
Her experience includes preparing wills, revocable and irrevocable trusts, durable powers of attorney, advance directives for health care and other estate planning documents.
Sophisticated estate planning also often utilizes irrevocable trusts to remove assets from the grantor's estate (for example, by making gifts to the trust) to avoid payment of estate tax on those assets.
More significantly, he remains concerned about malpractice claims, and this structure of irrevocable trusts and an LLC was viewed as providing protection.
With irrevocable trusts, the grantor gives up control of assets transferred into the trust.
Irrevocable trusts. Existing irrevocable trusts that hold low-basis assets should be reviewed to determine whether there is benefit to (and the possibility of) rendering them subject to estate tax in the estate of a beneficiary who might die before the increased exemptions sunset.
Simmons, Decanting and Its Alternatives: Remodeling and Revamping Irrevocable Trusts, 55 S.D.
Both California and New York allow generous changes to irrevocable trusts. California even lets trustees make petitions to handle irrevocable trusts without the approval of the beneficiaries.
There, she managed a full book of accounts, including IRAs, SNTs, revocable and irrevocable trusts, and investment accounts.
These days, with notable new statutes in several states, including Ohio, asset protection planning can also mean "bulletproofing" assets by moving them into irrevocable trusts. This item briefly addresses basic asset protection issues and then describes Ohio's new asset-protection ("Legacy") trust statute, which moves the state to the head of the class of asset protection jurisdictions.
It also covers the topic of irrevocable trusts that are generally not covered by Florida statutory law.
The SJC was wise to reject the BBA's call for a rule that trustees of irrevocable trusts inherently possess the power to decant.