irrevocable

Irrevocable describes something that cannot be changed, altered, or withdrawn. In law, finance, and everyday usage, it denotes a decision or instrument whose terms cannot be reversed by the party that created them. The word derives from the Latin irrevocabilis, from revocare to call back, with the prefix in- meaning not.

Irrevocable trusts are commonly used in estate planning. Once funded, the grantor typically cannot amend or revoke the trust unilaterally; the assets are generally treated as outside the grantor’s estate. Beneficiaries’ rights are established by the trust terms, and changes often require court action or agreement of the parties involved.

Irrevocable letters of credit are used in international trade. They impose an obligation on the issuing bank to honor a payment if documentary terms are met, and the credit generally cannot be amended or canceled without the consent of all parties.

Irrevocable powers of attorney are rare and usually require specific, limited circumstances. In contracts, certain offers or contracts may be irrevocable for a set period, such as option contracts that keep terms open for a defined time.

Despite the term, many instruments described as irrevocable include mechanisms for modification under defined conditions and applicable law, which means true irreversibility depends on the instrument and governing agreement.

See also: revocation, irrevocability, irrevocable trust, letter of credit.