A life insurance trust is a form of trust which is both the owner and the beneficiary of one or more life insurance policies. It an irrevocable and non-amendable trust.

A life insurance trust is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies. Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries.

(Moved from discussion comments below)

No to avoid estate tax penalty

The grantors of an irrevocable trust can take out life insurance on themselves and put it (term or whole life insurance) in the trust in order to pay the estate taxes on their estate assets when they die. This allows the grantor (giver of assets) to leave his estate assets to his children or someone else (beneficiaries) without them having to pay estate tax, or death tax as some call it.

Setting up an Irrevocable Funeral Trust Final Expense plan can now be done by attorneys, financial planners, insurance agents and funeral consultants.

With the funeral trust being offered by the attorney, financial planner, insurance agent or funeral consultant, the senior doesn't have to go to the funeral home. In the comfort of their own homes, they can sign an irrevocable funeral trust that is funded with a single payment life policy.

Liability insurance. An irrevocable trust made with the help of an attorney.

Generally, an irrevocable trust is titled 'irrevocable' or is designated as such somewhere in the first few paragraphs.

What is the difference between credit shelter trust and irrevocable trust?

no

No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.

No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.

No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.

No. A testamentary trust is irrevocable. The maker is deceased and cannot revoke it.

Some commonly used policies in estate planning to fund irrevocable trusts include life insurance policies, retirement accounts, and gifting strategies. These assets can be transferred into the irrevocable trust to provide financial security for beneficiaries and potentially reduce estate taxes.

Can you protect your assets from bankruptcy by placing them in an irrevocable trust?

if a settlor of an irrevocable trust feels that he was not properly informed by his attorney of all the restrictions what can he do

Yes. There are two types of trusts, living (intervivos) and testamentary. The living trust is created by a living person(called the settlor or trustor). The testamentary trust is created by the will of a deceased person. Living trusts are designated as either revocable or irrevocable depending on the authority of the settlor.

If the settlor has the power to cancel or revoke the trust, it is a revocable trust. If the settlor has no power to revoke it then it is an irrevocable trust. Since the revocable/irrevocable distinction is determined by what the settlor can do while he or she is alive, the trust had to have been made during the settlor's lifetime. Hence, an irrevocable trust is a living trust.

On the other hand a trust that is set forth in a person's will is revocable during the life of the testator simply by a modification of the will through a codicil. Once the testator has died that trust becomes irrevocable.

For gift tax purposes, advisors regularly recommend that an insured who owns a policy in his own name transfer the policy to a new irrevocable life insurance trust (ILIT) to remove the policy from the insured's gross estate.

Trust law is one of the most complex areas of law. It depends on the instrument that creates the trust. You need to discuss this question with an attorney who specializes in trust law.

Generally a trust set forth in a will is revocable by the testator during her life and irrevocable after her death.

You can get information on what a irrevocable trust is at the following sites I found for you to have a look at www.dummies.com/.../revocable-versus-irrevocable-trusts.htm ,en.wikipedia.org/wiki/Trust_law

No....If the home was in a irrevocable or trust life estate and that person died or in the case of the irrevocable trust there still alive and your the benaficairy the trustee can keep you out, but eventually depending on what the terms of the estate are turn the trust or estate over to you. Seek the advice of a probate attorney.

The biggest difference between the trusts is that the Living Trust is revocable and can be changed over time. For detailed information visit: http://www.ultratrust.com/revocable-trusts-vs-irrevocable-trusts.html

You need to look to the language of the trust to determine how it can be terminated. Review the trust document. If there is no provision for voluntary termination then you may need to get a judicial order to terminate it.

As long as you did not make your beneficiary irrevocable, you can just change your beneficiary. If your beneficiary is irrevocable you are out of luck unless you can get them to authorize the change.

You CAN get the assets back in a revocable trust.

You CANNOT get the assets back in an irrevocable trust. An irrevocable trust cannot be terminated by the settler once it has been created. The settler transfers their assets into the trust and no longer has any rights of ownership in that property or the trust.

The main reasons for setting up an irrevocable trust are estate planning and tax purposes. Generally, assets in an irrevocable trust are shielded from creditors.

In short no, an Irrevocable Trust cant be legally revoked by either party.

An irrevocable beneficiary is a beneficiary of an insurance policy or trust whom the policyholder or grantor cannot change without the beneficiary's consent. Once designated, the beneficiary cannot be removed or changed without their approval. Irrevocable beneficiaries have a vested interest in the policy or trust, providing them with more security and control over their inheritance.

The IRS can seize an irrevocable trust if the trust owes unpaid taxes and the assets within the trust are considered part of the taxpayer's overall assets.

You cannot have the same person as grantor, trustee and beneficiary in any trust. There is no trust created in such a set up. The grantor in an irrevocable trust cannot be the trustee. The property in an irrevocable trust must be permanently separated from the grantor's control.

Yes, a Crummey trust is a specific type of irrevocable trust commonly used in estate planning to take advantage of annual gift tax exclusion amounts. Beneficiaries of a Crummey trust have the right to withdraw gifts made to the trust within a certain period, after which the gifts become irrevocable.

No. Not if the trust was properly drafted.

Yes

Yes.

The timeline of an irrevocable trust depends on the way that it is structured. It could be terminated when the creator dies or it could last forever.

No. You cannot maintain any control over the assets in a irrevocable trust. Doing so will cause the trust to fail and leave you exposed to creditors and taxes.

As trustee that is their responsibility.

As trustee that is their responsibility.

As trustee that is their responsibility.

As trustee that is their responsibility.

The manner by which the trust can and should be terminated should be recited in the trust document.

We own the house my brother and me and I would to know if you can borrow on it. Thank You

The grantor has no control over the assets in an irrevocable trust. Those assets are under the control of the trustee.

Your answer may lie within the terms of the irrevocable trust. Otherwise, your attorney can help you answer your specific question.

No. That would invalidate the trust.

No. A trust cannot have an Individual Retirement Account.

Provisions of a living trust remain valid as long as you stay alive, but the benefactors of your estate are not bound by these provisions once you have died. An irrevocable trust binds the benefactors of your estate to the trust's provisions.

If the irrevocable trust is properly drafted and is not, in fact, a grantor-owned revocable trust, then it should have its own unique Taxpayer Identification Number ("TIN").

You can break an irrevocable trust only if there was some legal error involved in the establishment of that trust. If there was an error, you can then go to court and ask to have the trust invalidated on the grounds of that error. If there was no error, then no, you cannot break it.

In regards to finance the term irrevocable trust refers to trust that can not be changed or ended without permission of the beneficiary. The grantor removes all of his or her rights to both assets and the trust.

Your step mother can only change the beneficiary on the life insurance policy if she is the owner of the policy or if she is the trustee of the trust. If she's the trustee then she would need to have the authority to make changes on the insurance policy set forth in the trust document. Otherwise, she cannot make changes in the policy.

You haven't provided enough information for a more detailed answer such as who owns the policy and where your step mother "left" those instructions or how she is involved at all.

Warning! An irrevocable trust is not created when the grantor (trustor) is also the trustee. By transferring their property to a trust of which they are the trustee the grantor has retained control over the property. Irrevocable trusts are usually set up for tax purposes. The grantor cannot retain any control over the property in order for the trust to qualify as an irrevocable trust. The trust you describe has failed and left the trust property exposed to creditors and taxes. You need to consult with an attorney who specializes in trust law and tax law.

no

yes

Can an irrevocable trust be changed or a new one created if never funded; without beneficiary consent?

By their very nature an irrevocable trust is very difficult to "undo". You need to consult with an attorney who is an expert in trust law in your state and also an expert in federal tax laws. You can gain some background regarding the difficulty of disabling irrevocable trusts at the link below.

An irrevocable trust and an estate are two separate and distinct legal arrangements. If a person transfers their property to an irrevocable trust it is no longer part of their estate. You need to consult with an attorney who can review your situation, hear the details and explain your options.