As a Sacramento, California trust administration lawyer might say, a revocable trust is flexible and its flexibility is why it is an ideal estate planning choice for many individuals and families. As opposed to an irrevocable trust, the trustee can remove or add assets to it throughout their lifetime. This is why most trustees are the individuals are the trustor or the person who created the trust.
The process of creating a trust is simplified with the assistance of a Sacramento CA trust administration lawyer from Yee Law Group. A trust can also be terminated by the trustor until their passing, after which time control of the trust passes to their designated secondary or successor trustee (if the trustor was the primary trustee). There are additional reasons for terminating a trust that usually occur after the trustor has passed away.
Terminating a Revocable Trust in One’s Lifetime
When the trustor (creator of the trust) is also the trustee (the one who manages and controls the trust’s assets), they can terminate the trust at any time. They can do so on their own, though with the assistance of a trust administration lawyer in Sacramento CA from our firm, the process can be fast and easy.
- Assets that were transferred into the trust must be transferred back to the individual who created the trust (the trustor). They can also be transferred to other individuals if the trustor wishes.
- The trustor formally and legally revokes the trust. Usually this involves a trust revocation document that you will need to fill out and sign with a notary public’s notarization. Yee Law Group and our Sacramento CA trust administration lawyer can provide the necessary documentation. We also offer notary public services for your convenience.
Terminating a Revocable Trust After the Passing of the Trustor
After you pass away, the ability and responsibility of terminating the trust falls to your successor trustee.
- The trustor must have the trust’s assets retitled into their name so that they have the legal authority to handle those assets.
- The trustor then follows the instructions in the trust that you and your trust lawyer specified as to how to distribute the assets.
- Upon distributing all of the assets, the trustee can then revoke or terminate the trust. Until then, the trust will remain open until the terms you specified are fulfilled.
Common Reasons to Terminate a Revocable Trust
The most common reason to terminate a revocable trust is that the intention of the trust has been fulfilled with the total distribution of its assets. However, as our trust administration lawyer might tell you, there are other reasons why a trust may be terminated. Here are some of the most common reasons for terminating a revocable trust:
- Substantial and fundamental changes occur during the trustor’s lifetime such as a divorce, marriage, or death of an heir.
- The trustor wishes to make substantive changes to a trust and their trust lawyer determines it will be more fruitful to simply start over by terminating it and creating a new one.
If you are considering forming a trust, contact a trust administration lawyer Sacramento CA clients recommend from Yee Law Group to learn how we can make this process simple and expedient.