Irrevocable trusts are sometimes intimidating.  Why would I want to set up a trust that I can't revoke?  Even though you cannot revoke an irrevocable trust, there are many ways that it can be flexible.

1.       As the grantor (trustor, settlor, creator), you can retain the right to remove the trustee and name a new one, at any time, without giving a reason.  With that power you can be fairly certain that the trustee is likely to follow your "suggestions."

2.       When you create the trust you can build in a provision to have a "protector" appointed.  A protector can be given powers that you cannot have, e.g., the power to remove a beneficiary; the power to add a beneficiary; the power to change the allocation among the beneficiaries (instead of 1/3rd to each of 3 children, it might be 80% to one child and 10% to each of the other 2); and the power to change the manner of distribution to the children (instead of ½ of the principal at ages 25 and 30, it might become 1/4th of the principal at ages 25, 30, 35 and 40).

3.       You can have the trustee invest the assets into a single member LLC of which you are the manager (the only one who signs on the bank account).

4.       You, as the grantor, and the children, as the beneficiaries, can amend the trust without court approval.

5.       If there is an irrevocable trust that has provisions that you do not like, set up a new irrevocable trust that you like and give the new trust enough assets to buy the assets from the "bad" trust (this works well for an insurance trust).

In conclusion, if you need or want to set up an irrevocable trust for your heirs, there are ways to do so that will make you comfortable.  If you have an irrevocable trust that bothers you, let's talk.

To learn more about the benefits of irrevocable trusts, please contact us today.