How can a trust become irrevocable?
In Massachusetts, a trust can become irrevocable by executing a document that removes the donor’s right to alter or terminate the trust. This document is known as the “irrevocable trust agreement” or “irrevocable declaration of trust.” Irrevocable trusts are permanent and can’t be amended or terminated by the donor or their heirs. Under Massachusetts law, irrevocable trusts are created by the donor, the trustor, who transfers legal title to the property to a trustee, who then holds the property in trust for the benefit of one or more named beneficiaries. The terms of the trust set out how and when the beneficiaries will receive distributions from the trust. In irrevocable trusts, the trustor gives up ownership of the trust assets and control over the trust. The trustor, or donor, loses the ability to modify, revoke, and terminate the trust. They also cannot alter the terms of the trust after the document is signed and the trust is funded. In some cases, there are certain rights and powers that the trustor can reserve when the trust is initially created, such as the right to receive income from the trust or to direct where trust assets are invested. However, these rights and powers must be specifically mentioned in the trust document. Once the trust has become irrevocable, the trustor is not able to alter any of the terms of the trust or take back control of the trust assets. That’s why it’s important to carefully consider the terms of an irrevocable trust before it is created.
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