What is an irrevocable trust?

An irrevocable trust is a legal arrangement established in Illinois estate planning law that allows the transfer of assets or property from one person to another. The grantor (the person creating the trust) transfers ownership of the assets in the trust to a trustee (an individual or an institution, such as a bank or a law firm), and the trustee then holds, invests, and administers the assets for the benefit of a designated beneficiary (the person receiving the beneficial enjoyment of the trust). Once the grantor has transferred ownership of the assets to the trustee, they are no longer owned by the grantor, and cannot be recalled or revoked by the grantor. This is what makes an irrevocable trust different from a revocable trust. In an irrevocable trust, the grantor gives up control of the assets they put into the trust, allowing the trustee to manage them for the benefit of the beneficiary according to the terms of the trust. This is valuable not only as a way to pass on assets to future generations, but also for tax planning and asset protection.

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What is an irrevocable trust?

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