| Alan R. Horvath, Attorney at Law |
| Frequently Asked Trust Questions |
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
P.O. Box 81
596 Mountain Ranch Rd.
San Andreas, CA 95249
596 Mountain Ranch Rd.
San Andreas, CA 95249
What is an irrevocable trust?
Revoke means to reverse. An irrevocable trust is one where the person who created the trust can not undo it at
will. There are many reasons why a person might want to create an irrevocable trust. First, this is one way in
which to distribute not only income, but the tax liability associated with it. An irrevocable trust is its own tax paying
entity. It files its own tax return. However, it may take a deduction for income that is distributed to the trust
beneficiaries, in which case it becomes taxable to them.
Since revocation is reserved for the individual who created the trust, a revocable trust becomes irrevocable upon
the death of the individual who created it.
Revoke means to reverse. An irrevocable trust is one where the person who created the trust can not undo it at
will. There are many reasons why a person might want to create an irrevocable trust. First, this is one way in
which to distribute not only income, but the tax liability associated with it. An irrevocable trust is its own tax paying
entity. It files its own tax return. However, it may take a deduction for income that is distributed to the trust
beneficiaries, in which case it becomes taxable to them.
Since revocation is reserved for the individual who created the trust, a revocable trust becomes irrevocable upon
the death of the individual who created it.
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