What Is an Irrevocable Trust?

By Robin Hartill, CFP – Updated Dec 13, 2024 at 10:03 AM

Key Points

Irrevocable trusts prevent changes by the grantor and reduce taxable estate size.
Assets in an irrevocable trust are protected from creditors unless set up to evade legal action.
Creating an irrevocable trust requires expert advice due to its complex and inflexible nature.

If you're looking to avoid estate taxes, protect assets from creditors, or preserve someone's access to government benefits without depleting assets, you may need to set up an irrevocable trust. An irrevocable trust is a trust that can't be altered or revoked by the grantor (the person who established it). Setting up an irrevocable trust can be complicated and should only be done for a few specific purposes. Keep reading to learn how irrevocable trusts work.

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Estate Planning written on paper with calculator and small metal house on top. — Image source: Getty Images.

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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