Why Should You Use an Irrevocable Trust in Your Estate Plan?

 Posted on May 12, 2025 in Estate Planning and Administration

Trusts are legal documents that put ownership of certain assets in a trust managed by a trustee. They can be an integral part of an estate plan, with many benefits including avoiding probate. Integrating trusts into an estate plan can be a great way to help you reach certain goals, like ensuring that your assets provide for future generations of beneficiaries, or minimizing taxes.

From living trusts to life insurance trusts to testamentary trusts, there are different types of trusts that you can select depending on your particular estate planning needs. One type of trust that can serve an estate plan well is the irrevocable trust, which has unique benefits. An experienced Tarrant County, TX estate planning attorney can help you decide if an irrevocable trust is right for you.

What Is an Irrevocable Trust?

As the name suggests, an irrevocable trust cannot be "revoked" or modified without the approval of the grantor and all the beneficiaries, and even then only under certain conditions. When a grantor creates a trust, they transfer their assets out of their ownership and control. There are many different types of irrevocable trusts that all work in unique ways, with some notable examples being the charitable remainder trust and the irrevocable life insurance trust.  

What Are the Advantages of an Irrevocable Trust?

The fact that the irrevocable trust takes assets away from the grantor’s control is the key to many of the advantages of the irrevocable trust. Irrevocable trusts put assets out of the reach of creditors, so they are a particularly useful tool for people in professions that tend to be vulnerable to lawsuits. They can also be a great way to reduce estate taxes, because when an irrevocable trust is set up, the money that is placed in the trust is also removed from the estate, thereby reducing the taxable estate.

Another benefit of irrevocable trusts is the control they give the grantor, so they can ensure that the beneficiaries use the money responsibly. For example, an irrevocable trust can specify lifetime distributions that are spaced out over some time rather than as a lump sum. In that way, they can prevent a "spendthrift" beneficiary from using up all the money in one go.

Call a Tarrant County, TX Estate Planning Attorney

When you are ready to formulate an estate plan to protect your assets and provide for your family, you need the advice of an experienced Hood County, TX estate planning attorney. At Cain & Kiel Law we work with clients to formulate an estate plan that helps them meet their goals. Call us at 817-645-1717 for a consultation so we can discuss your needs and how best to serve them.