What Is An Irrevocable Trust? – Advanced Offshore Asset Protection


As you might already know, there are different kinds of trusts that can be used to protect your assets. One of these alternatives is the irrevocable trust.

What is an irrevocable trust? Unlike a revocable trust, which allows for the trust document to be amended, an irrevocable trust on the other hand works in the opposite way.

With an irrevocable trust you don’t have the same freedom, it doesn’t allow you to change any terms, unless it includes a clause that allows you to make some changes, under certain circumstances.

Asset Protection

For the purpose of protecting assets, it actually works, which is not as much the case with a revocable trust. In the event of a court asking you to revoke your trust you can’t comply, because you won’t be able to. Even if you are a beneficiary, and has the right to benefit from trust assets, if it’s drafted correctly no one will be able to successfully demand any compensation from the trust fund.

It’s important to do your asset protection planning preferably many years in advance of something bad potentially happening. The only time an asset owned by an irrevocable trust isn’t protected, is in case you have made a fraudulent transfer. Either by purposefully trying to defraud your creditors, or even by mistake.

Let’s say you are sued. In most cases you can’t simply transfer all your assets including savings to a trust during a lawsuit, and then declare yourself as insolvent. It’s still technically possible to protect some of your assets even in those situations, but it can be very limited.

The most successful asset protection plans, are implemented well in advance of a potential legal attack. Often many years before anything like that happens.What Is An Irrevocable Trust - Infographic

Inheritance And Taxation

As with a revocable trust, you can enjoy certain tax advantages, which depends on the tax system you are under.

It’s possible to limit taxation on assets left behind, intended as inheritance.

Probate court can often be eliminated, which saves a lot of costs for those who otherwise would be involved in that process.


I only recommend people to get a trust when they have real wealth to protect, because a solid asset protection plan is not an inexpensive investment. It’s also important to make sure your structure holds a high standard of quality. Instead of a solution that is cheap, and turns out to not work after all.

It’s also best to set up your trust offshore, because then it will be outside of your home country’s legal system, where a local judge in your home country has no jurisdiction.

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About The Author


Fredrik helps high net worth individuals with creating international asset protection strategies. To keep anything from currency, real estate, precious metals and any other kind of investment protected from an unexpected lawsuit.