Quick Definition

An irrevocable trust is a type of trust where its terms cannot be modified, amended, or terminated without the permission of the grantor's named beneficiary or beneficiaries.

Examples

• 1A wealthy individual sets up an irrevocable trust to minimize estate taxes, transferring substantial assets into the trust, thus reducing the taxable estate.
• 2Parents create an irrevocable trust to manage and protect assets for their children until they reach a certain age, ensuring financial stability and controlled spending.
• 3A person establishes an irrevocable trust to donate assets to a charitable organization, securing a tax deduction and providing long-term support to the charity.

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