An irrevocable trust for minors is a legal mechanism in which a client establishes an irrevocable trust, transferring assets to a trustee to manage for the benefit of a minor. The trust is irrevocable, meaning the client cannot influence the trust after its creation. The primary reasons for establishing this type of trust are:
To protect the assets for the minor, who may be too young or immature to receive the gift outright.
To create a generation-skipping trust that allows the assets to bypass the client's children and directly benefit the grandchildren, thereby avoiding estate taxes for one generation.