What it is: a trust that generally cannot be changed, amended, or revoked once it has been created and funded. Once assets are transferred into an irrevocable trust, they are no longer owned by the person who created the trust — and are managed according to the trust’s terms.
When is it worth giving up control? Older estate-tax strategies, Medicaid planning, asset protection, and situations where the grantor wants to make a final and binding gift. Because you give up control, an irrevocable trust is only appropriate for reasons reviewed carefully with an attorney.
What you give up: the ability to pull the assets back, change beneficiaries, or revise terms. In exchange you may get creditor protection, tax advantages, or Medicaid eligibility.
Watch out for: people sometimes sign an irrevocable trust for “asset protection” without grasping they no longer own the money. Only do this with advice, and only for a clear goal.