What is an irrevocable trust?
An irrevocable trust is a trust that cannot be modified or revoked once it has been set up. This type of trust is used to protect assets and ensure that they will be used for a specific purpose. In North Dakota, an irrevocable trust is created by a legal document that outlines the terms and conditions of the trust. The trust is formed when one or more persons, known as the grantor(s), transfers legal title of property to another person, known as the trustee, to manage and use for the benefit of a third party, known as the beneficiary. The property transferred into the trust is not subject to the grantor’s control or the claims of creditors, meaning that it is shielded from legal challenges and cannot be revoked. Furthermore, the irrevocable trust provides the trustee with the authority to manage the property, invest it, and distribute it according to its terms. In North Dakota, irrevocable trusts are subject to the same inheritance and tax laws as other trusts.
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