3 Possible Ways To Terminate An Irrevocable Trust Earlier Than Intended
The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307
Many trust administrations proceed smoothly and as originally intended by the person who created the trust. However, circumstances can change that lead to some trusts no longer having the same purpose they were intended to fulfill. In these cases, a trustee may want to pursue a termination of the trust. Terminating an irrevocable trust should be overseen by a professional to prevent potential liability on the part of the trustee.
Possible Avenues to take in Order to Terminate An Irrevocable Trust:
If as the trustee you feel that the best course of action is to terminate the trust, consider the following:
- First of all, obtain the consent of all interested parties. In some cases, a trust can be terminated provided that you have the consent of all interested parties. This means that all of the beneficiaries of the trust must be in agreement that the trust should be terminated. If all parties agree, you may be able to terminate the trust without involving the Superior Court in San Diego or other court that has jurisdiction.
- Because not all the interested parties may agree, you can obtain a court order. If you cannot gain the consent of all interested parties there is another option for terminating an irrevocable trust. You can obtain an order of the court. This entails filing a petition and involving the court.
- Furthermore, utilize your powers as a trustee. Depending on the terms of the trust that you are in charge of administering, you may have been given the authority to amend or terminate if circumstances have changed or if it no longer makes sense to continue the trust administration. It is important to consult with an experienced attorney before pursuing this option. The ramifications can be significant if you act improperly.
Did this article answer your questions about terminating an irrevocable trust? We would love to hear your feedback. Send us an email today!