What distinguishes an irrevocable trust?

An irrevocable trust is defined by its fundamental characteristic that once it is established, the trustor relinquishes control over the assets placed into the trust. This means that the trustor cannot modify or terminate the trust at their discretion. The assets in an irrevocable trust no longer belong to the trustor; instead, they are managed according to the terms set forth in the trust document.

This feature creates a clear distinction from revocable trusts, where the trustor retains the ability to alter the terms or dissolve the trust entirely. The irrevocability provides benefits such as asset protection, estate tax advantages, and clarity in the distribution of assets according to the trustor's wishes. Because the trustor cannot change the trust once it is established, beneficiaries have a more secure expectation of receiving their designated assets.

By contrast, the other options misrepresent the nature of an irrevocable trust. They either describe features that apply to revocable trusts or inaccurately limit the purposes or benefits of establishing such a trust. Overall, the inability of the trustor to modify or terminate the trust is what fundamentally distinguishes an irrevocable trust from other types of trusts.