What is an irrevocable trust?

An irrevocable trust is a legal agreement in which a person (the settlor) transfers assets or property to another person (the trustee), to hold on behalf of a third party (the beneficiary). The settlor gives up all control and ownership of the assets and the trustee administers the assets according to the terms of the trust. The terms of an irrevocable trust cannot be changed, and the trust cannot be terminated without the beneficiary’s consent. In the state of New York, an irrevocable trust is an important component of estate planning. It is used to protect assets from being subject to taxes or creditors. For example, if an individual wants to set aside money for a specific beneficiary, he can create an irrevocable trust to provide for the beneficiary and protect the assets from taxation or creditor claims. Additionally, an irrevocable trust can be used to minimize estate taxes. Because an irrevocable trust is not revocable or modifiable, it is important to ensure that the trust is properly drafted and that it meets all of the requirements of the law in New York. An experienced estate planning attorney can advise the settlor on the best course of action and provide advice on drafting an irrevocable trust that meets the settlor’s needs.

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What is an irrevocable trust?

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