An irrevocable trust is a trust that cannot be amended, modified, or terminated by the grantor, settlor, or trustor (person who created the trust) after it is created—at least not without the permission of the beneficiary or beneficiaries.

Irrevocable trusts generally offer tax benefits that revocable trusts do not. This is primarily because the grantor, settlor, or trustor who creates an irrevocable trust permanently transfers (gifts) all right of ownership of the assets to the trust and its beneficiaries.

Laws vary from state to state but a trust is usually irrevocable unless the grantor, settlor, or trustor specifies otherwise in the trust agreement.

In New Mexico, an irrevocable trust is a type of trust that, once established, cannot be altered, modified, or revoked by the grantor without the consent of the trust's beneficiaries. The creation of an irrevocable trust involves a permanent transfer of ownership of assets from the grantor to the trust, effectively removing the assets from the grantor's taxable estate. This can result in significant tax advantages, such as reduced estate taxes and protection from creditors, as the assets are no longer considered part of the grantor's property. New Mexico statutes and federal laws govern the creation and administration of irrevocable trusts, and these laws dictate how the trust must be managed and how the assets are to be distributed to the beneficiaries. It is important for individuals considering setting up an irrevocable trust in New Mexico to consult with an attorney to ensure that the trust is properly established and meets all legal requirements.