Irrevocable Trust

Business, Legal & Accounting Glossary

Definition: Irrevocable Trust


Quick Summary of Irrevocable Trust


A permanent trust. Once you create it, it cannot be revoked, amended or changed in any way.




Full Definition of Irrevocable Trust


An irrevocable trust is a trust that once established, cannot be revoked, terminated, or changed in any way.

This means that upon transferring assets into an irrevocable trust, the grantor can reserve no right to amend or abolish irrevocable trust proceeds. Furthermore, the grantor of an irrevocable trust is not permitted to make withdrawals from the trust principal. However, in some cases changes can be made to an irrevocable trust account upon the consent of a beneficiary. By this virtue, a living trust would not be an instance of an irrevocable trust. Examples of irrevocable trust accounts may include child trusts, as well as 2503 trusts. Irrevocable trust accounts may be set up for the purpose of saving on estate taxes, as well as protecting against creditor claims. An irrevocable trust may also be used to facilitate one or more life insurance plans.


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Definition Sources


Definitions for Irrevocable Trust are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 1 Views.