Irrevocable Trust Legal Meaning and Definition

Here is a simplified definition of the legal term Irrevocable Trust.

Irrevocable Trust (noun)

• An irrevocable trust is a type of trust where its terms cannot be modified, amended or terminated without the permission of the trust's beneficiary or beneficiaries. The grantor (person who creates the trust) effectively transfers all rights of ownership to the beneficiaries and has no control over the assets he/she has placed in the trust. Example: Mr. Williams places his house in an irrevocable trust for his daughter, meaning he no longer possesses the rights to alter the trust agreement, sell the house, or cancel the trust altogether.