Irrevocable Trust
A trust that generally cannot be changed or canceled once it is created. The person who creates it gives up control of the assets placed in the trust. This can provide tax benefits and asset protection.
Legal Definition
A trust that, by its terms, may not be revoked, amended, or terminated by the grantor after execution, except as provided by the trust instrument or by court order under limited statutory grounds.
Practical Example
Robert creates an irrevocable trust and transfers $2 million into it for his grandchildren. He can no longer access that money or change how it will be distributed, but it is now protected from his creditors and removed from his taxable estate.