Irrevocable Trust

Categories: Tax, Trusts and Estates

When rich people want to pass on their assets to their heirs without having both the grim reaper and taxes take away all of their hard earned dough, they usually set up an irrevocable trust.

Basically, a legal account is set up so that rich parents contribute money to it under various tax-avoiding rules like "no more than $24,000 per kid per parent per year" and "no more than $10 million total" and so on.

That trust is then irrevocable—that is, it can only be given away to the kid. It can't be taken back if the kid turns out to be a total loser or marries an entire of commune of goat-people.

Serious. Business.

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