Irrevocable Trust Agreement

Modification of an irrevocable trust requires party consent.

An irrevocable trust agreement is a legal document that creates an irrevocable trust. Typically, the agreement must be signed by the trust's creator, also known as a settlor, and his appointed trustee. Parties should direct specific legal questions about trusts to an attorney.

Trust Agreement

In any trust agreement, the settlor selects one or more trustees and gives those trustees legal title to certain assets. The trustee takes care of the assets on behalf of specific beneficiaries (in a private trust) or a class of beneficiaries (in a charitable trust.)

Irrevocability

An irrevocable trust, once created, cannot be changed or revoked unless the key parties (settlor, trustee and beneficiaries) all give their written consent to the change. Once the settlor dies, no party can change the trust unless a court steps in.

Agreement Language

In most jurisdictions, default law assumes that a trust is irrevocable. However, a settlor may refute this assumption by including clear language in the trust agreement that shows his intent that the trust remain revocable.

Irrevocable Trust Uses

Settlors often use irrevocable trust agreements for estate planning; they may also place assets in trust in order to protect those assets from claims by creditors.

References

• "Wills, Trusts and Estates (Seventh Edition)"; Jesse Dukeminier, Robert H. Sitkoff, James M. Lindgren and Stanley M. Johanson; 2005
• "Black's Law Dictionary (Seventh Edition)"; Garner, Bryan (Editor);1999
• The Money Alert: Revocable vs. Irrevocable Trusts
• Investor Guide: Irrevocable Trusts