Which type of trust is typically created for the benefit of individuals or charitable organizations and can't be changed?

An irrevocable trust is a type of trust that, once established, cannot be modified, amended, or revoked by the grantor. This means that the assets placed in the trust are permanently removed from the grantor's control. The primary purpose of creating an irrevocable trust is often to benefit individuals, such as family members, or charitable organizations, while also providing certain tax benefits.

Because the terms of the irrevocable trust are fixed upon creation, this type of trust is commonly used in estate planning and charitable giving. For example, it can be set up to ensure that the beneficiaries receive financial support over time or that charitable organizations benefit from the trust's assets without interference from the grantor.

In contrast, a revocable trust allows the grantor to retain control and flexibility since they can change or dissolve the trust whenever they choose. A living trust is typically revocable and created during the grantor's lifetime, while a testamentary trust is established through a will and only comes into effect after the grantor's death. These other types of trusts do not share the irrevocable nature, which is key to understanding the unique characteristics of an irrevocable trust.