A regular irrevocable trust is a non-charitable gift plan defined by federal tax law that allows an individual to transfer assets to family members at reduced tax cost.
The donor irrevocably transfers assets, usually cash or securities, to a trustee of her choice, such as a bank trust department. The amount transferred into the trust is treated as a taxable gift from the donor to the beneficiaries of the trust. During the trust's term, the trustee invests the trust's assets. The trust's term is set by the donor.