What is an irrevocable trust?

An irrevocable trust is a type of trust in which the creator (the settlor or grantor) gives up their ability to modify or revoke the trust. It is commonly used as a way of protecting assets from taxation, creditors, and lawsuits. In Texas, an irrevocable trust must be created in writing and signed by the settlor or grantor. Once the trust is established, the grantor is generally not allowed to change the terms of the trust. The trust is managed either by the grantor or a trustee appointed by the grantor. The trustee is in charge of managing and investing the trust’s assets. The trust’s assets can be distributed according to the terms set forth by the settlor or grantor, such as the beneficiaries and the time period for which the assets are to be held. It is important to remember that the assets in an irrevocable trust are not the property of the trustee or the grantor; rather, they are held in trust for the beneficiaries named in the trust. An irrevocable trust can be used for various purposes in the state of Texas, such as to provide for long-term care, support children or grandchildren, and minimize estate taxes. It can also be used to protect assets from the claims of creditors and lawsuits. It is important to remember that once the trust is set up, it is no longer under the control of the grantor and can only be modified or revoked if specific conditions are met.

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