An irrevocable trust is a trust that the grantor generally cannot freely revoke or amend after creation.
Why an irrevocable trust matters
An irrevocable trust matters because giving up control can change how property is managed, protected, taxed, or distributed. These trusts are often used only when the legal and practical consequences are understood, because unwinding or changing them can be difficult.
The exact effect depends on the trust terms, state law, tax rules, and the purpose of the trust.
Where an irrevocable trust appears
Irrevocable trusts appear in estate planning, asset-management planning, special-needs planning, charitable planning, life-insurance planning, creditor disputes, and trust administration.
Practical example
A grantor transfers property into an irrevocable trust for beneficiaries and gives an independent trustee authority to manage it under the trust document. The grantor may not be able to simply take the property back.
How an irrevocable trust differs from nearby terms
An irrevocable trust differs from a revocable trust because the grantor’s power to change or revoke it is limited. It differs from a will because a will operates at death, while a trust can own and manage property during life.
Related terms
Quick knowledge check
Why can an irrevocable trust be harder to change than a revocable trust?