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  • Blacksburg Office

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    2000 Kraft Drive
    Suite 2165
    Blacksburg, Virginia 24060

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    Brian Mack was most helpful in explaining the "legalese" when he was working with me recently. I went in with little or no knowledge of what I was going to need, and he immediately made me feel at ease and not as skeptical as I feared this...
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What is an Irrevocable Trust?

What is an Irrevocable Trust?

            What is an Irrevocable Trust in Virginia?  An Irrevocable Trust is a type of Trust that, when created, cannot be modified, amended, or terminated without the approval of the Trust’s beneficiaries, and also most often time a Court Order.  The intention is to create a Trust that is legally a separate tax entity from the Grantor creating the Irrevocable Trust.

            The Grantor of the Trust transfers ownership of certain assets to the Irrevocable Trust, which by nature causes all rights and liabilities of ownership to be transferred to the Irrevocable Trust as well.  This is especially useful for people who have high net worth, or for people who have a higher chance of being on the receiving end of a lawsuit.  By transferring these assets to an Irrevocable Trust, a person can safely insulate their assets from these dangers.

            One of the more important distinctions between an Irrevocable Trust and a Revocable Trust is that of ownership.  With a Revocable Trust, a person can appoint themselves as the Trustee and maintain control of the assets of the Revocable Trust.  Conversely, it is inadvisable for a person to appoint themselves as Trustee of an Irrevocable Trust, as the IRS tends to be skeptical of a person who is the Trustee of their own Irrevocable Trust.

            An Irrevocable Trust is a complex legal entity that must be drafted carefully due to the unchanging nature of an Irrevocable Trust.  It is highly advisable to discuss with a competent attorney to draft the Irrevocable Trust.   Call our office today at 540-443-9255, or email at [email protected] to discuss your estate planning needs with an experienced estate planning attorney.