An irrevocable trust is a legal arrangement where the grantor permanently relinquishes control and ownership of the assets transferred into it. Upon the death of the individual who created the trust, the trust itself does not terminate automatically. Instead, it continues to operate according to the specific instructions and provisions outlined in the trust document. For example, if the trust specifies that assets be distributed to beneficiaries upon the grantor’s passing, the trustee will then execute those instructions.
The enduring nature of this type of trust after the grantor’s death is a central feature that offers numerous advantages, including continued asset protection from creditors, potential estate tax benefits, and the seamless transfer of wealth to designated beneficiaries. The framework established during the grantor’s lifetime ensures their wishes are carried out effectively and efficiently. Historically, such trusts have served as vital tools in estate planning to protect family wealth across generations.
