An Irrevocable Trust, governed by the Texas Trust Code, is a trust whose terms generally cannot be altered, amended, or revoked once established, except in limited circumstances allowed by statute or court order. These trusts are typically used when a client’s goals require permanently relinquishing control, such as for advanced tax planning, gifting strategies, or qualifying for government benefits. Because assets placed in an irrevocable trust generally do not receive a step-up in basis at the grantor’s death, they are most advantageous when transfer-tax reduction, asset protection, or eligibility considerations outweigh the loss of post-death income-tax benefits.
