What is an irrevocable trust?

An irrevocable trust is a type of trust that cannot be changed or revoked once it is finalized. It is a legal document that outlines how assets should be managed and distributed. It is created at the discretion of the person setting up the trust, known as the settlor or grantor. The assets placed into an irrevocable trust are protected from the grantor’s creditors and are also not subject to income taxes. In Virginia, irrevocable trusts are governed by the Virginia Code. This Code outlines the types of trust that can be created as well as the legal requirements for setting up an irrevocable trust. The grantor typically appoints a trustee to manage the trust, and the trustee is responsible for distributing assets according to the terms outlined in the trust agreement. Beneficiaries may be designated to receive specific assets from the trust. The name of the beneficiary and the assets that they will receive are outlined in the trust agreement, and these assets will be passed on to the beneficiary when the grantor dies. Irrevocable trusts can be used to protect the assets of an estate, and they are often used to plan for the future of the grantor’s estate. The grantor must have the capacity to create the trust and must be of the age of majority, 18 in Virginia, in order to create an irrevocable trust.

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What is an irrevocable trust?

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