What is an irrevocable trust?

An irrevocable trust is a type of legal arrangement in which a person transfers ownership of assets to a trustee who then holds and manages the property for the benefit of a designated beneficiary according to the terms of the trust. In Maryland, irrevocable trusts are commonly established by individuals who wish to preserve their assets for future generations. Unlike a revocable trust, which can be changed or revoked by the original grantor, an irrevocable trust is not changeable once it is created. The grantor has no control over the assets once they are transferred to the trust; instead, the trustee is responsible for managing the trust assets according to the terms of the trust. The assets in an irrevocable trust are typically protected from creditors and can be used to minimize the impact of estate taxes. In addition to asset protection, there are other advantages to creating an irrevocable trust. For example, if the trust is a special needs trust, the trustee can manage the trust assets to ensure that the beneficiary’s needs are met without affecting their eligibility for government assistance. Furthermore, an irrevocable trust can be used to provide for a minor’s future needs, such as college tuition and other expenses. Irrevocable trusts can be a powerful estate planning tool, but they are also complex and require careful consideration. It is important to work with an experienced attorney to ensure that the trust is properly established and that the rights of the grantor and the trust beneficiaries are properly protected.

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What is an irrevocable trust?

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