An irrevocable trust is a trust that cannot be modified or terminated without the consent of the beneficiaries. Unlike a revocable living trust, the Trustor of an irrevocable trust cannot change his or her mind about the terms of the Trust and the Trustor usually relinquishes all rights to the property transferred to the trust. Irrevocable trusts are primarily used to make gifts of property, so that the property and, more importantly, any appreciation on that property is entirely removed from the Trustor’s estate.
Irrevocable trusts come in many forms and are created to achieve various objectives. Irrevocable trusts can be created for liability protection, reduction of estate tax exposure, and to further effectuate the Trustor’s plans for transferring his or her property.
If you are interested in learning more about irrevocable trusts or any other advanced planning strategies, please contact us to schedule a complimentary consultation at (714) 581-8808.