What does it mean for a trust to be irrevocable?

An irrevocable trust is designed to provide a level of protection for the assets placed within it, characterized primarily by the fact that it cannot be modified or terminated once established. This permanence is crucial as it provides certainty to the beneficiaries and ensures that the assets are managed according to the grantor's original intent without the risk of changes that could potentially diminish their value or accessibility.

When a trust is established as irrevocable, the grantor relinquishes control over the assets included in the trust. This is often a strategic decision for several reasons, including the desire for asset protection from creditors, tax benefits, and ensuring that the trust operates under the specific terms laid out in the trust agreement. Once the irrevocable trust is in place, any changes would typically require legal action or court approval, rather than simply being modified by the grantor.

This understanding reflects the foundational principles of trust law, ensuring that the beneficiaries have a secure and clear expectancy of what they will receive. It also highlights the importance for individuals considering whether to create a revocable or irrevocable trust, given the significant implications for control and asset management.