Irrevocable Trusts

There are two standards to consider with regards to an irrevocable trust. The IRS has the stricter standard: they consider any trust in which the grantor retains any meaningful control of or interest in the assets, or the power to change the beneficiaries or trustee, to be a grantor trust, and taxable to the grantor. Thus, an... more »

Estate planning is an important concern for many people. Because doing it right means navigating complex IRS rules, most find it very beneficial to hire a professional estate planner or attorney when creating an irrevocable trust. Though an irrevocable trust is more complicated and more expensive to create than a revocable trust, it... more »

Family trusts may be either revocable or irrevocable. This designation is established when the trust is created. Revocable trust can be terminated at any time at the request of the grantor, or the person who creates the trust. Irrevocable trusts can terminated as well, but require both the grantor and beneficiaries to agree to the... more »

An irrevocable trust is one that cannot be revoked or amended by the person who creates the trust, or the grantor. These trusts are taxed as separate entities and at a fairly high rate, so it's common for them to disburse all or most income to the beneficiaries annually. For tax purposes, the IRS might consider some irrevocable trusts... more »

The hallmark of an irrevocable trust is the grantor's surrender of ownership interest in the assets of the trust. Generally, under state laws, the irrevocable trust simply cannot be amended, modified or revoked by the grantor. The IRS rules on estate taxation are much stricter, and to have the trust recognized as a separate tax entity... more »