Steps You May Have to Take to Terminate a Trust in California
You May Have to Take to Terminate a Trust in California
At some point during a trust administration in California, it will make sense for the trustee to wind up the process and terminate the trust. To properly terminate a trust requires careful attention to California probate laws, trust laws, and tax matters. Trustees should seek the guidance of an experienced attorney familiar with the procedure for ending a trust to protect themselves and the trust from any potential liability.
The following is an overview of some of the steps that might be taken during the trust termination process:
- Consult with a probate court lawyer for assistance with winding up the affairs of the trust and properly terminating it.
- Review the terms of the trust to determine whether there are specific provisions relating to closing the trust.
- Send notice in writing to the California trust beneficiaries and other interested parties.
- Provide beneficiaries and interested parties with the effective date of the trust dissolution.
- Obtain signed acknowledgments from the beneficiaries concerning their receipt of trust distributions.
- Prepare a written trust dissolution document that includes the name of the trust, the date it was created, the names of the grantors or settlors, and the date of dissolution.
- If the California Trust is being terminated early, obtain consent from all beneficiaries.
- If the trust is being terminated because the principal of the trust is so low that maintaining the trust administration is unreasonable, file a petition with the probate court for termination.
If you are ready to start your case, then please give us a call or fill out our Get Help Now form. A comprehensive overview of California Probate is available here. Should you have additional questions about trust litigation, you will find plenty of useful information in our Learning Center.