What is an irrevocable trust and why would I give up control of my own assets?

An irrevocable trust is one you generally cannot change or revoke after creating it; you give up ownership and control of the assets you put in. In exchange, those assets are typically removed from your taxable estate and can be shielded from creditors and lawsuits. That trade-off, control for protection and tax benefits, is the whole point.

People use irrevocable trusts to reduce estate taxes for very large estates, protect assets for Medicaid long-term-care planning (subject to a look-back period), hold life insurance outside the estate, or provide for beneficiaries who need oversight. Because the decision is hard to undo, irrevocable trusts aren't for everyone; most families do fine with a revocable living trust. Consult an estate attorney before locking assets away.