Irrevocable Trust

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Trust that cannot be revoked by the person creating it, except with approval of the Beneficiary as opposed to a Revocable Trust in which the trust instrument can be modified or terminated at will.

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A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets into the trust, effectively removes all of his or her rights of ownership to the assets and the trust.

This is the opposite of a "revocable trust", which allows the grantor to modify the trust.

Investopedia Says:
The main reason for setting up an irrevocable trust is for estate and tax considerations. The benefit of this type of trust for estate assets is that it removes all incidents of ownership, effectively removing the trust's assets from the grantor's taxable estate. The grantor is also relieved of the tax liability on the income generated by the assets. While the tax rules will vary between jurisdictions, in most cases, the grantor can't receive these benefits if he or she is the trustee of the trust.  

The assets held in the trust can include, but are not limited to, a business, investment assets, cash and life insurance policies.

Related Links:
Decrease the value of your taxable estate and prevent the tax man from getting you one last time. How To Avoid Taxation On Life Insurance Proceeds
This arrangement allows you to have more control over your estate - both before and after your death. Establishing A Revocable Living Trust
Taxpayers with large taxable estates must take steps to reduce them before 2011. Tax-Efficient Wealth Transfer
Learn about a strategy that could help you reduce taxes, diversify your portfolio and generate income. Saving Money With A Private Annuity Trust
With some preparation, you can save your heirs from paying a hefty estate tax. Here are some tips. Getting Started On Your Estate Plan


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Irrevocable (finance term)
Revisionary Trust (finance term)
Testamentary Trust (in banking)
Revocable Trust (in banking)
Charitable Remainder Trust (business term)