How to Dissolve a Revocable Trust

By Anna Assad

A living trust is a legal agreement you draft regarding control and distribution of your assets while you're still living. The person creating the trust is referred to as the trustor or settlor, and the persons with authority to act on behalf of the trust are the trustees. A living trust can typically be ended or amended by the trustor at any time if the trust is revocable.

A living trust is a legal agreement you draft regarding control and distribution of your assets while you're still living. The person creating the trust is referred to as the trustor or settlor, and the persons with authority to act on behalf of the trust are the trustees. A living trust can typically be ended or amended by the trustor at any time if the trust is revocable.

Step 1

Check state laws regarding revocable trusts. The laws might require you include specific information or wording on the revocation document, such as the date the trust was created. List all the items you need to include in the revocation.

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Step 2

Review the revocable trust's terms. The trust should have a part addressing dissolution or revocation. Add any requirements the trust papers impose on dissolution, such as stating the reason, to the revocation item list.

Step 3

Prepare a dissolution document. Use the revocation list as reference; include all items on the list. What you need to include depends on your state and your trust's wording, but you typically need the name of the trust, the date of its creation, the names of the trustors and the trustees and a statement indicating the trust is hereby revoked. Don't have the trustors sign the document yet.

Step 4

Make a list of all trust assets. Write down what you must do to put the trust asset back into the name of an individual, typically the trustors. For example, if your home is in your trust, you need to prepare a new deed from the trust to you as an individual and file the deed in the property's county land records. If the trust belongs to you and your spouse, transfer the home from the trust to you and your spouse as husband and wife on a deed.

Step 5

Transfer all of the assets from the trust. Make copies of all transfer documents for your records.

Step 6

Have all trustors sign the revocation document in front of a notary. Ask the notary to notarize the signature. Make copies of the document.

Step 7

Deliver the revocation document to all places who had the trust on file and all parties affected, including the trustees, beneficiaries and financial institutions. Keep the original for your records.

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Amending a Living Trust in California

References

Related articles

How to Dissolve an Irrevocable Trust

An irrevocable trust is an agreement that manages assets of the trustor, or creator of the trust, for the benefit of the trust's named beneficiaries. Unlike a revocable trust, an irrevocable trust doesn't contain a clause that allows the trustor to dissolve the trust at will. However, a trustor might be able to terminate an irrevocable trust by following state laws regarding dissolution. While laws vary by area, some general requirements must be met in most states.

How to Dissolve My Revocable Living Trust in California

The settlor of a California revocable living trust may dissolve all or part of the trust at any time. A revocable living trust is an estate planning tool used to keep assets out of probate. A settlor creates the revocable living trust, transfers ownership of selected assets to it, and usually designates himself as trustee and primary beneficiary. He names alternate beneficiaries to receive assets upon his death. Until that event, he retains use and control of the assets, and retains the right to dissolve the trust at will.

How to Terminate a Living Trust

Any trust that you establish during your lifetime is a "living trust." Living trusts can be revocable, which means that the person creating the trust, known as the "grantor," can terminate it during her lifetime. However, living trusts can also be irrevocable, which means the grantor cannot terminate the trust. In this case, the trustee can terminate the trust, but only in the manner specified in the trust – for example, after all the assets have been distributed.

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