If a trust agreement is established as irrevocable, it means that it can’t be revoked (broken) except under unusual circumstances. Why would anyone want an irrevocable trust?
Many times the reasons for an irrevocable trust involve estate and/or income tax avoidance. In order to be successful in such avoidance, the trustor must not have any direct or indirect power or control over the trust property or income. The regulations on this subject, set out by the Internal Revenue Code, must be carefully followed.
Related Questions
- Why is it better to have an irrevocable life insurance trust purchase alife insurance policy on the donor, rather than have the heirs themselves own a permanent life insurance policy with the premium paid by the heirs with gifts by the now- living donor?
- If a trust agreement is established as irrevocable, it means that it can be revoked (broken) except under unusual circumstances. Why would anyone want an irrevocable trust?
- Is a leave and license agreement exempt from registration under any circumstances?
