Irrevocable Trust

An irrevocable trust is a legal arrangement in which a grantor permanently transfers assets to a trust, relinquishing control and the ability to change or revoke its terms after creation. This structure is used primarily to reduce estate taxes, protect assets from creditors, and control distributions to beneficiaries well into the future. Once established, only the beneficiaries or a court may alter or terminate it; the appointed trustee manages the assets according to the trust's terms and holds fiduciary responsibility to act in the beneficiaries' best interest. Assets placed in an irrevocable trust are generally excluded from the grantor's taxable estate and shielded from legal claims and probate.