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What Is An Irrevocable Trust?

What is an irrevocable trust? Simply put, an irrevocable trust is one that cannot be changed once it has been agreed and signed. A revocable trust can become an irrevocable trust after the person making the trust dies – or after another specific date if that is put in writing.

This is what happens with most revocable trusts. In order to make probate easier, it will immediately become irrevocable on the death of the trust maker. It will also often split into separate irrevocable trusts, one for each of the people named within it. These can be lifetime trusts, if they are for dependents.

You may wish to write an irrevocable trust if you want to reduce your inheritance tax liability since anything in trust (such as your property) won’t be counted as part of your estate when you die, and therefore won’t be subject to inheritance tax.

An irrevocable trust can also be useful if you want to leave some of your estate to charity. You can leave part of the estate in trust, so that the charity receives exactly the amount that you chose.

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