What is an irrevocable trust?

An irrevocable trust is defined as a trust that cannot be modified, amended, or revoked after it has been established. Once the grantor creates an irrevocable trust, they relinquish control over the trust assets and the terms outlined in the trust document. This characteristic is significant as it provides certainty and protection for the assets placed within the trust, ensuring they are managed according to the specified instructions without the possibility of alteration by the grantor.

In contrast, a trust that can be changed at any time indicates a revocable trust, which allows for flexibility and control over the assets. A trust that is only valid for a limited time does not apply to irrevocable trusts, as their duration is typically designed to last until the completion of the purposes outlined within the trust. Finally, while some trusts may require court approval to dissolve, this is not a defining feature of irrevocable trusts. Irrevocable trusts inherently resist modification or dissolution by the grantor without the consent of the beneficiaries. Thus, the defining aspect of an irrevocable trust is its permanence in structure and function post-creation.