What is an irrevocable trust?

An irrevocable trust is a legal document in which one party, often referred to as the “trustor”, transfers ownership of certain assets to another party, the “trustee”, for the benefit of a third party, the “beneficiary”. The trustor can no longer make any changes to the trust or the assets that are held in the trust once it has been established and the trustor is not allowed to take back any of the assets that were transferred to the trust. The trustee is the one who manages the trust assets and distributes them according to the trustor’s wishes. In Nevada, an irrevocable trust may be used for disability planning purposes. It may be used to protect the assets of a disabled person from creditors and to provide for the needs of the disabled person. An irrevocable trust can be used to manage and preserve the assets of a disabled person, allowing the assets to be used for the benefit of that disabled person without being subject to taxation or creditor claims. This type of trust is often used by people who anticipate that their assets may become subject to taxation or creditor claims, such as in the event of death or disability. Ultimately, creating an irrevocable trust in Nevada can be an effective way to ensure that the disabled person’s assets are used for their benefit and that their assets are protected from taxation and creditors.

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What is an irrevocable trust?

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