Why set up an irrevocable trust? Assets held in an irrevocable trust generally become exempt from the grantor’s taxable estate. This in turn decreases the grantor’s tax liability, particularly if they have a large estate. Irrevocable trusts can also avoid probate and are private, meaning the...
The primary downside of an irrevocable trust is that no changes can be made once the trust is finalized. Whatever is put into the trust is no longer the grantor's. This could have severe implications down the road. For example, if you put a house or a significant amount of cash i...