How to Alter or Terminate a Trust
A trust moves ownership of assets from one individual to a trustee, who is responsible for holding the assets for a named third-party beneficiary. Sometimes it’s necessary for the creator of the trust, also called the grantor, to alter or terminate the trust. This may be allowed — or prohibited — based on the terms of the original contract.
When it comes to your trust, conditions outlining your ability to change or cancel its terms are noted within the document. If your trust is considered irrevocable, it means that no action may be taken to update or end the trust, unless the grantor and beneficiaries all agree to the changes. If a trust is revocable, the grantor may modify or void it at any time for any reason.
Changing and terminating trusts
If a trust can be both revoked and modified, the instructions for making changes to the contract will be defined within the document. Typically, changes to the trust may be made through a written amendment, a witness or notary acknowledging the signature of the changed document or a trustee agreeing to the revocation or change in the document.
In some cases, a trust is not amendable, but may be able to be terminated. If a change needs to be made to this type of trust, the grantor may be able to revoke the first trust entirely and create a new trust containing the desired change. Before altering or terminating a trust, it’s important to meet with your attorney to carefully review the terms and the laws of the state in which the trust was created.
For more information on changing or terminating your trust, speak with a knowledgeable estate planning attorney at the Charles Law Offices in Florida.