What is an irrevocable trust?

An irrevocable trust is a type of trust in which the trustmaker cannot modify, withdraw or terminate the trust or its terms. This differs from a revocable trust, which is a trust in which the trustmaker can revoke or change the terms of the trust. Irrevocable trusts are commonly used in Virginia estate planning to ensure that assets are protected and used in accordance with the trustmaker’s wishes. In an irrevocable trust, the trustmaker transfers ownership of assets to the trust. Once the assets are transferred, the trustmaker no longer has legal ownership of the assets and loses the right to decide how they’ll be used. The trustmaker appoints a trustee to manage the trust assets and oversee their distribution. The trustee must abide by the terms of the trust and ensure that the trust’s assets are used as the trustmaker intended. The terms of an irrevocable trust cannot be changed unless the trustmaker and all beneficiaries agree. Because of this, it’s important that trustmaker carefully consider their options before establishing an irrevocable trust. The trustmaker should consult an attorney to ensure that the trust has the correct structure and language to meet the trustmaker’s wishes. Once established, an irrevocable trust is usually difficult to modify or terminate.

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