Irrevocable Trust (noun):
As the trustee of an irrevocable trust, it is your job to carry out the wishes of the creator of the trust as contained within the trust instrument. Unfortunately, circumstances sometimes change. When this happens, it may not make sense to continue with the administration of the trust. Trustees may wish to consider an early termination of the irrevocable trust as result.
7 Considerations When Terminating an Irrevocable Trust Early:
If you are contemplating an early termination of an irrevocable trust, consider the following:
- First of all, review the terms of the trust. Is the trustee given the authority to terminate a trust under certain circumstances?
- Consider whether all or most of the beneficiaries are in agreement with the plan to terminate the trust early.
- If the beneficiaries are not in agreement, consider whether you are willing to obtain an order from the Superior Court in San Diego or other court of proper jurisdiction.
- Determine your reasoning for terminating the trust early. Have circumstances changed so that the intent of the trust can no longer be carried out?
- Furthermore, assess whether any of the beneficiaries could potentially be harmed by the early termination of the trust.
- If circumstances have changed and that is why you feel you should terminate the trust early, consider whether the creator of the trust could have anticipated these changed circumstances.
- Finally, consult with an experienced attorney who can guide you through this process. Attempting to terminate a trust without following the proper procedures can lead to harm to the trust assets as well as potential trustee liability.
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AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307