What is an irrevocable trust fund?
An irrevocable trust fund is a legal relationship designed to own money and property in a way that protects the property from creditors, minimizes income and estate taxes and avoids probate. Anybody who owns property can create an irrevocable trust fund to hold title to that property.FunctionA trustor creates a trust by appointing a trustee, transferring property to the trustee and naming one or more trust beneficiaries. The trustee invests the trust property for the benefit of the beneficiaries and occasionally makes payments of trust property to the beneficiaries.TypesTrusts can be either revocable or irrevocable, as decided by the trustor at the time of creation of the trust. A trustor can terminate a revocable trust at any time and without permission, but a trustor must obtain the trustee’s and beneficiaries’ permission before terminating an irrevocable trust.BenefitsAll trusts, whether revocable or irrevocable, help avoid probate, which is the annoying legal process that occurs wh
