What is an irrevocable trust? Simply put, it’s 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 of them. 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 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 one 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.
These trusts 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.
Our team of professional advisors are capable of helping if you need further help and guidance. Contact us or call us on 0203 985 9554.
