Florida Health Insurance Terms:
Define: "Irrevocable Trust":
A trust that cannot be revoked or amended by the party who establishes it. This type of trust is often established when life insurance is purchased to protect an estate.
In 2007, Anna Nicole made her son's future fortune secure by creating an Irrevocable Trust to her fortune. Both her and her son died without changing the trust.
Detailed:A living trust is a legal arrangement used in estate planning that provides for the management and distribution of your property when you die. The trust is usually evidenced by a written document called a "Declaration of Trust" or "Trust Agreement," whereby one person, called the "trustor" or "grantor," transfers property to another person, called the "trustee," who holds the property for the benefit of another person, called the "beneficiary."
The obligation of the trustee is to conserve and protect assets transferred to the trust, and to collect income and distribute or accumulate it as prescribed in the trust instrument. The typical living trust is revocable and amendable by the grantor during his or her lifetime. During his or her lifetime, the grantor is also the trustee and beneficiary. As trustee, the grantor can manage and control the trust property; as beneficiary, the grantor receives all of the benefits of the trust assets.
Upon the death of the grantor, a "successor trustee" (child, friend, bank, etc.) takes over as trustee and follows the trustor's instructions, which are set forth in the trust, concerning the distribution of property and the payment of taxes and expenses.
Further details - Irrevocable Trust: Google Financial News
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