What is an Irrevocable Living Trust?
An irrevocable living trust is a trust established while you are still alive that can not be changed once it is signed. Irrevocable living trusts have substantial advantages for those with large estates, but have obvious limitations as they can not be altered or revoked after being created. Irrevocable Living Trusts A trust is a legal arrangement and document that places assets or property under the control of a trustee. In a living trust, the trust is made and often managed by you while you are still living. Once you die, however, the trust becomes irrevocable or unchangeable. This differs from a living irrevocable trust, however, as the irrevocable living trust is created before your death not after. Advantages of Irrevocable Living Trusts A living irrevocable trust has two distinct advantages in addition to the advantages of all living trusts. The income under the trust may not be taxable to the trustor and the assets in the trust may not be subject to estate or death taxes as part