Irrevocable Trusts
TYPICAL IRREVOCABLE TRUST
Many times a person during his or her lifetime might wish to give property to another but, for one reason or another does not
want the person to have outright ownership of the property (at least not immediately). (1) To solve this problem, an Inter Vivos
Irrevocable Trust is used. Irrevocable trusts are also used when required by statute to achieve tax-planning benefits, such as with
charitable remainder and lead trusts, personal residence trusts, and grantor retained annuity trusts. (2)
An Irrevocable Trust cannot be revoked or altered by the settlor since it is a completed gift to the Trust for a beneficiary. Thus,
the settlor of the trust must give up the right to change his mind. Moreover, the settlor must relinquish the trust property, either
permanently or for some specific period of time. The irrevocable trust may be established during the lifetime of the settlor in the
same manner as a revocable trust, or, an irrevocable trust may be established by the terms of a revocable trust upon the death of
the settlor.
