What is an irrevocable trust?

An irrevocable trust is a trust that cannot be altered, amended, or revoked by the creator of the trust. Once the trust is created, the creator’s right to modify or terminate the trust is removed and the trust property is no longer considered part of the creator’s estate. An irrevocable trust is often used to keep trust property out of the creator’s estate for the purpose of estate planning, or to protect the trust assets from creditors. An irrevocable trust can be created by any person or entity that has legal capacity, such as an individual or a business. The primary benefit of an irrevocable trust is that the trust property is no longer considered part of the creator’s estate, so it is not subject to estate or inheritance taxes. Moreover, the trust assets are protected from the claims of the creator’s creditors and third parties. This can be beneficial in cases where the creator of the trust is in a high-risk profession and has substantial assets that they wish to protect from creditors. An irrevocable trust in Nevada must be created under the Nevada Trust Code. This code outlines the duties and responsibilities of the trustor, the trustee, and the beneficiaries of an irrevocable trust. When creating an irrevocable trust in Nevada, it is important to consult a qualified attorney or advisor to ensure that all legal requirements are met.

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