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By: Scott Grossman on August 5th, 2016

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:

  1. Consult with a probate court lawyer for assistance with winding up the affairs of the trust and properly terminating it.
  2. Review the terms of the trust to determine whether there are specific provisions relating to closing the trust.
  3. Send notice in writing to the California trust beneficiaries and other interested parties.
  4. Provide beneficiaries and interested parties with the effective date of the trust dissolution.
  5. Obtain signed acknowledgments from the beneficiaries concerning their receipt of trust distributions.
  6. 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.
  7. If the California Trust is being terminated early, obtain consent from all beneficiaries.
  8. 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.