What is an irrevocable trust?

An irrevocable trust is a type of legal arrangement that is used in disability planning law in Virginia to protect assets for a person with a disability. It is designed to allow the disabled person to continue to receive government benefits and avoid taxes on assets while still having access to the assets. The trust is "irrevocable" because the person cannot make any changes to it or take money out of it without permission from the Trustee. This type of trust is often used when a family wants to ensure that a disabled family member is cared for in the event that the primary caretaker cannot continue to provide assistance. By creating an irrevocable trust, the disabled person will be able to receive government benefits such as Supplemental Security Income (SSI) and Medicaid without having to worry about losing them due to high asset levels. In addition to providing a safety net for the disabled person, an irrevocable trust also provides a way for families to plan for the future. It can provide a tax-advantaged way to pass on assets to the person with a disability or to their family members. Since an irrevocable trust is difficult to change or revoke, it can be reassuring to families that the terms of the trust will always be honored.

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What is an irrevocable trust?

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