Can you Change a Revocable Trust to an Irrevocable Trust?

Well, yes, you can convert a revocable trust into an irrevocable one, but again, this needs detailed planning and following of steps with legal help. Whereas in a revocable trust, the grantor enjoys the freedom to make amendments, add or withdraw assets, he or she can even dissolve such a trust during his or her lifetime, an irrevocable trust is way too inflexible, as, once established, such a trust cannot be amended; moreover, the grantor completely loses all control over whatever assets are transferred to the trust.

A revocable trust is converted into an irrevocable trust either through the express action of the grantor, who must opt to revise the terms of the trust during his lifetime, or upon his death automatically. In other cases, the instrument for the trust agreement may provide that it is to become an irrevocable trust upon the death of the grantor or on the happening of a specific event.

Once this kind of revocable trust becomes an irrevocable trust, these assets are, for the most part, sheltered from creditors and perhaps better reserved for the beneficiaries. The transformation in estate planning is often performed not only to ensure distribution according to the grantor's wishes but also to avoid probate.

This often requires consultation with an attorney or certified financial advisor in advance. One Pacific Trust guides individuals through the often-complex process of converting a trust so the trust will continue to be in conformance with the grantor's long-term financial and estate planning goals.

While it is possible to convert a revocable trust into an irrevocable one, the decision to make such a conversion must be of a person having full comprehension of the relevant legal and financial implications.