What is an irrevocable trust?

An irrevocable trust is a type of trust that cannot be changed or revoked after it has been set up. This means that once it is established, the terms of the trust cannot be altered or undone. It also means that the creator of the trust no longer holds any legal title to the assets placed in the trust. Assets transferred to an irrevocable trust typically become the property of the trust and are managed by a trustee who is responsible for following the instructions laid out in the trust agreement. In Pennsylvania, irrevocable trusts are used for a number of purposes. These include asset protection, tax planning, and estate settlement upon death. The trust agreement includes details on how the assets should be managed and distributed. This includes defining who the beneficiaries of the trust are and how the assets should be distributed when the trustmaker dies. When creating an irrevocable trust, it is important to note that it can be difficult to alter or revoke the trust later on. The trustmaker should be aware that by setting up an irrevocable trust, they are giving up control of their assets and any modifications to the trust require the approval of all involved parties. Additionally, irrevocable trusts can be costly to create and maintain, so the trustmaker should consider this when deciding whether this type of trust is best for their situation.

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