What Makes a Revocable Trust Irrevocable?

One of the most common ways that a revocable trust becomes irrevocable is when the settlor, or person who creates the trust, dies. Upon the settlor’s death, the terms of the trust become irrevocable and cannot be changed by anyone, including the beneficiaries.

Another way that a revocable trust can become irrevocable is if the terms of the trust specifically state that it is irrevocable. For example, the trust may state that it becomes irrevocable upon the settlor’s death or upon the occurrence of a certain event. If the terms of the trust make it clear that it is irrevocable, then it cannot be revoked by anyone, including the settlor.

In some cases, a revocable trust may become irrevocable due to a change in circumstances. For example, the terms of the trust may state that it becomes irrevocable upon divorce or marriage because it can result in significant changes in assets and liabilities.

This can happen if the settlor files for bankruptcy or if there is a dispute between the settlor and the beneficiaries. In these cases, the court may order that the trust be made irrevocable in order to protect the interests of all parties involved.