What is an irrevocable trust?

An irrevocable trust is a type of trust that cannot be changed or revoked once it is created. In the state of Texas, disability planning law lays out how an irrevocable trust is established. An irrevocable trust is created when a Grantor (the person who creates the trust) transfers property to a Trustee (the person who holds the property for the benefit of the trust). The Grantor also names a Beneficiary (the person who receives the trust benefits) and a Trust Document (a written document that outlines the terms of the trust). Once the irrevocable trust is established, the Grantor can no longer make changes, nor can they revoke or terminate the trust. The Trustee is legally Bound to follow the instructions from the Trust Document, acting in the Beneficiary’s best interests. The Beneficiary of the irrevocable trust has the right to receive any funds or proceeds from the trust, but does not have any control over how the funds are distributed. An irrevocable trust is a powerful tool for Texas residents with a disability who want to make sure that their assets are protected and well-maintained. It also ensures that the Beneficiary’s future needs are taken care of, even if the Grantor is no longer able to do so.

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What is an irrevocable trust?

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