Irrevocable means just what it says: it is irrevocable. The person gifting assets to an Irrevocable Gift Trust cannot receive those assets back from the Irrevocable Gift Trust for a financial emergency or because the creator changes his mind. The Irrevocable Gift Trust’s creator cannot change the beneficiaries or designate new beneficiaries if he intends that the assets that comprise the Irrevocable Gift Trust will not be able to be included in the creator's estate for estate tax purposes when the creator dies.

Irrevocable Gift Trusts should be considered by persons who want to immediately implement an annual gift giving program to individuals including those who may not have sufficient maturity, age or inclination to manage the assets which will be the subject matter of the gift. Irrevocable Gift Trusts should be established by individuals who have estates exceeding (or are anticipated to exceed) the amount that can pass free of federal and state estate taxes.

An Irrevocable Gift Trust is generally an effective estate planning vehicle than an Age 21 Minor's Trust (more commonly known as a Section 2503(c) trust) or a custodial account created under a state Uniform Gifts to Minors Act or Uniform Transfers to Minors Act. Both custodial accounts and Section 2503(c) trusts require that funds comprising such custodial accounts or trusts are made available to the beneficiary once the beneficiary reaches the age of 21, even though such beneficiary may not possess maturity to make appropriate decisions regarding the use of the funds. For that reason, when contemplating making gifts to individuals who currently are not ready or able to manage funds, consideration should be given in creating an Irrevocable Gift Trust, rather than a custodial account or Section 2503(c) trust.

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