An Irrevocable Trust cannot be altered amended or terminated by the person creating it. Once the assets are transferred into the Trust without retention of any kind of power over the assets, the person creating the Trust can no longer regain ownership of that asset. However, it provides certain benefits that a Revocable Trust cannot. They can be used for estate and tax considerations. The benefit of this type of trust for estate assets is that it removes all incidents of ownership. It can be used in conjunction with qualifying for Medicaid. Irrevocable trusts can also be useful to individuals who work in professions that may make them vulnerable to lawsuits, such as doctors or attorneys. Once property is transferred to such an Irrevocable Trust, it is owned by the trust for the benefit of the named beneficiaries. Therefore, it is safe from legal judgments and creditors, as the trust will not be a party to any lawsuit.
The collective assets comprise the trust fund, which may consist of the following: