What is an irrevocable trust used for?

An irrevocable trust is a type of trust used in asset protection law in Tennessee. It is a way to protect assets from creditors and maintain privacy about those assets. The trust is set up so that the original owner of the assets no longer has control over them, instead the assets are controlled by a trustee. The original owner still has the right to benefit from the assets but they no longer own them; any asset income or profits are for the benefit of the trust itself. Once an irrevocable trust is established, the assets are not included in the original owner’s estate for tax purposes. Additionally, any creditors of the original owner cannot touch the assets of the trust. This is especially useful if the assets are placed into a trust prior to any creditor coming after them. When assets are placed into an irrevocable trust they are taken out of the original owner’s direct estate, and protected from any creditors who may try to take those assets in the future. This form of asset protection law in Tennessee is often used by those with high net worth to protect their estate from creditors.

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What is an irrevocable trust used for?

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