What are irrevocable living trust? Trusts where the grantor permanenantly gives over control of the assets in the trust over to a trustee. The grantor no longer owns this money, which means that they will not pay capital gains taxes from stocks or other investments.
While not being tax-free, this can reduce the taxes paid by the grantor and the beneficiary. For those who know that they want a certain portion of assets to go to a particular person or even a charity, this can be a good way to go. Clearly, the grantor would not be in need of this money or they wouldn’t sign it away.