Clients often set up irrevocable trusts, for other beneficiaries. In an irrevocable trust most of the rights to the property transferred to the trust are given up.
The basic difference between an irrevocable trust and an outright gift is that the former provides the beneficiary with competent property management and with protection from himself and others who might misuse or waste the gift.
One common use for this type of trust is to remove the value of life insurance from ones estate. This is known as an irrevocable life insurance trust (ILIT).
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