What is an irrevocable trust?

An irrevocable trust is a type of trust that, once set up, cannot be changed or revoked. This type of trust is commonly used in New York for estate planning to reduce taxes, protect assets, and provide for beneficiaries. An irrevocable trust is created by a grantor, the person who sets up the trust. The grantor transfers money or property (the assets) into the trust and sets up the instructions for how the trust funds will be managed, invested, and distributed. The grantor also appoints a trustee, who is in charge of managing the trust. The trustee has a fiduciary duty to manage the assets in the trust according to the grantor’s instructions. Although the grantor can no longer change the trust after it has been created, the trustee can usually manage the trust, including making investments, distributing money to beneficiaries, and making changes to the assets that were placed into the trust. An irrevocable trust can be used to protect assets from creditors, taxes, and estate costs. It can also help save money for potential beneficiaries by bypassing probate court. Additionally, the grantor may keep some control over the trust after it has been created by specifying who will receive the assets upon their death. In New York, the laws governing trusts and estates are complex. Because of this, it is best to consult an established trusts and estates lawyer when creating an irrevocable trust.

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What is an irrevocable trust?

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