Irrevocable Trusts

As the name implies, an irrevocable trust cannot be revoked and ordinarily cannot be amended.  Different types of irrevocable trusts are used to meet different objectives; however, with most types of irrevocable trusts, the person or persons creating the trust (the "settlor") gives up at least some of the management and control of the trust assets.  Frequently, gifts to irrevocable trusts are motivated by a desire to remove an asset from the settlor's estate, thereby reducing the settlor's estate tax liability, or to protect the assets from the claims of potential creditors.  An irrevocable trust may also be created to make annual exclusion gifts to children without giving the child immediate control of the gifted assets.

Irrevocable trusts may also be used to make charitable gifts.  Charitable remainder trusts provide for the distribution of the portion of the trust's assets to individual beneficiaries either for a fixed term or for the lifetime of the beneficiary.  After the fixed term or death of the beneficiary, the assets remaining in the trust are distributed to the designated charity.  Charitable lead trusts provide for the distribution of the portion of the trust's assets to individual beneficiaries for a fixed term.  After the fixed term, the assets remaining in the trust are given to designated beneficiaries.  Both types of trusts can create tax advantages while furthering the settlor's charitable intent.

There are a variety of different irrevocable trusts available to meet each client's specific estate planning goals. 




Francis A. "Nick" Jones - Attorney At Law
5150 East Pacific Coast Highway, Suite 200
Long Beach, California 90804
Phone: (562) 346-3292  Facsimile: (562) 346-3293