Irrevocable 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 ?
com/news/local_coverage/2017/11/aaron_hernandez_arranged_trust_that_hid_wealth_beyond_reach_of_creditors) reports that, prior to his death, Hernandez arranged an irrevocable trust that named his daughter as the beneficiary.
Both Trusts Are Irrevocable Trust Funds That Are Fiduciary Funds Of The City Of Plano.
Situations arise where, over time, the terms of an irrevocable trust no longer fit a family's needs.
Clients seeking some measure of certainty in their estate plans often put their confidence in an irrevocable trust.
F) announced on Friday, that on 3 Match 2016 the Pamajugo Irrevocable Trust notified the company of its acquisition of 2,722,221 shares in Ontex.
Exclusive brokers Brian Ezratty, Vice Chairman and Principal of Eastern Consolidated, and Scott Ellard, Vice President and Principal, represented the Goldie Moss Irrevocable Trust as seller, and procured the buyer, 157E55 Owner LLC.
If Dan and Daisy's estate plan calls for assets to be split into a survivor's revocable) trust and a decedent's irrevocable trust, the portability amount called the Deceased Spouse Unused Exemption amount would be $1,340,000.
This eliminates one of the tax benefits of using an irrevocable trust as a conduit to transfer real property within a family.
For wealthier clients who can afford to self-insure, making formal gifts to fund an irrevocable trust that owns the LTCI policies is a strategy worth considering.
By reregistering assets into the name of an irrevocable trust, he can transfer ownership and taxation to the trust entity.
Flexibility is achieved by maintaining individual ownership of the life insurance policy and designating an irrevocable trust as contingent owner of the policy (which could subsequently be changed to a new irrevocable trust with different provisions and beneficiaries).
The creation of an irrevocable trust usually involves a separate trust document, prepared by an attorney, that names a trustee (who will have sole control of the trust assets) and that states the manner in which the trust's funds will be distributed.