How can a trust become irrevocable?
A trust can become irrevocable when the terms of the trust are established in a signed, written document by someone with the legal authority to do so. In Washington, this means that an individual, known as a settlor, sets up the trust and must appoint a trustee to manage the trust and its assets. The settlor must also provide directions for how the trust should be administered. The trust document must be filed with the Washington State Department of Revenue for it to become irrevocable. Once the trust is filed, the settlor will no longer be able to make any changes to the trust or its contents. The trust would then become irrevocable and the trustee would be tasked with managing and administering the trust. In addition, a trust can be made irrevocable through a court order. This could be used to prevent the settlor from making any changes to the trust. However, once the trust is made irrevocable, the settlor may not be able to change their mind and revoke the trust. Once a trust is made irrevocable, it serves as a binding contract and any assets included in the trust will be subject to its terms. Although an irrevocable trust cannot be changed, it does offer certain benefits, such as protecting assets from creditors or providing tax benefits that may not be available through other means.
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