What are the pros and cons of an irrevocable trust?

Once a settlor transfers their property or assets to a trust, they will be relieved of tax liabilities that are associated with the asset or property. There are, however, also some cons an individual should consider when creating an irrevocable trust. One major con is inflexible terms. By its design, an irrevocable trust is not very flexible.

Are trusts revocable or irrevocable?

Trusts can either be considered revocable or irrevocable. Revocable trusts are more common, and they can give you more control over your assets while you're still alive. With an irrevocable trust, the government no longer sees you as the owner of your assets; the trust is the owner.

What are the tax consequences of an irrevocable trust?

There are also tax consequences of irrevocable trusts. Once a settlor transfers their property or assets to a trust, they will be relieved of tax liabilities that are associated with the asset or property. There are, however, also some cons an individual should consider when creating an irrevocable trust.