What is an irrevocable trust?

An irrevocable trust is a type of trust that cannot be altered or undone without the permission of all parties involved. This type of trust is used in estate planning law in Alaska and other states to protect assets from creditors and to minimize taxes. An irrevocable trust is created by a grantor who puts assets into the trust and names a trustee to manage them. The trust document specifies the beneficiaries who will receive the trust assets when the grantor dies or at a certain date. The grantor has no control over the assets once they are placed in the trust, which is why it is called irrevocable. The trustee takes over management of the trust assets and has a fiduciary duty to act in the best interest of the beneficiaries. The grantor may choose a family member or friend to be the trustee, or they can select a professional financial institution to handle it. One of the main benefits of an irrevocable trust is that the assets in the trust are not included in the grantor’s estate for tax purposes. This can help reduce the amount of estate taxes that the grantor’s heirs will be responsible for after the grantor passes away. It can also protect the assets from creditors. Overall, an irrevocable trust can be a beneficial tool for estate planning in Alaska. By placing assets in an irrevocable trust, the grantor can ensure that their assets will be managed in an efficient and effective manner for the benefit of the beneficiaries.

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What is an irrevocable trust?

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