How to Prepare for an Irrevocable Trust

The whole point of an irrevocable trust is so the assets cannot be reached. Once the assets are transferred to the trust, they cannot be accessed by creditors or third parties until it is paid to a beneficiary.  Care must be taken to use very specific language as the trust cannot be revoked later.   

1. Hire a certified appraiser to examine the items you wish to bequeath to heirs. Only include assets in the trust that you can relinquish total control over.


2. Choose a short name to serve as the “trust name”. Remember that this name will appear at the top of documents, account records and checks.             


3. Fill out an Irrevocable Trust Agreement. Enter the trust’s name and ID number. Specify the date the trust is to begin.  


4. Identify the main parties involved in the trust; the trust grantor (you), the beneficiaries of the trust and the trustee (the person who will administer the trust after your death).


5. Confirm the trust is to be irrevocable.  Decide what controls the trustee can exert, and be clear in your language because the trust cannot be revoked. Determine the distribution of assets. 


6. Sign and date the trust to make it effective.  Have it notarized; there may be a nominal fee.    


7. Transfer assets without a title by filling out an Assignment.  If a title is available, transfer the title into the trust using an Agreement for Sale and Purchase.   Enter the appraiser’s value on the forms and complete.


8. Waive payment by filling out a Deed of Acknowledgement of Debt. A Deed of Acknowledgement agrees that a purchase was made but no payment was received. Forgive the debt over time as allowed by state gift-giving laws.