What is an irrevocable trust?

An irrevocable trust is a type of trust created under the law of Minnesota that cannot be modified or revoked after it has been created. The trust is designed to provide protection of the assets it holds, and to provide benefits to the intended owner or beneficiary. In Minnesota, an irrevocable trust is created when a settlor (the person creating the trust) transfers property to a trustee (a person who is responsible for managing the trust) to be managed for the benefit of a beneficiary (the person who will receive the benefits of the trust). This trust can direct the trustee to hold, distribute, and invest the assets for the benefit of the beneficiary according to the terms of the trust. The trustee is obligated to act in accordance with the terms of the trust agreement, and the terms cannot be changed once the trust has been created. Even the settlor generally cannot make any alterations to the trust, as it is irrevocable. As a result, an irrevocable trust can provide considerable protection for the assets it holds, and can offer several different benefits to the beneficiary.

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