What Is an Irrevocable Trust?

By Robin Hartill, CFP – Updated Dec 14, 2025 at 8:58 PM EST

Key Points

Irrevocable trusts help reduce estate taxes by removing assets from the grantor's taxable estate.
Assets in an irrevocable trust are protected from creditors, enhancing financial security.
Setting up an irrevocable trust is complex and often requires legal assistance for correct execution.

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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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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