While many trust administrations proceed as smoothly and as originally intended by the person who created the trust, circumstances can change. Due to various circumstances, trusts may no longer serve the purpose that they were once intended to fulfill. Therefore, a trustee may seek to terminate an irrevocable trust early. If you do choose to terminate an irrevocable trust early, we recommend that you seek a professional attorney to guide you through the process because seeking professional help will help prevent any liability issues on the part of the trustee.
Three Avenues to Terminate an Irrevocable Trust
If you are the trustee and would like to terminate an irrevocable trust, there are various ways to go about it. Consider the following possible avenues for terminating an irrevocable trust:
- Obtain the consent of all interested parties. There are cases where you can terminate an irrevocable trust once you have the consent of all interested parties. If all parties agree, you may be able to terminate the trust without having to involve the Superior Court in San Diego or any other court.
- Obtain a court order. Because gaining consent from all interested parties might prove to be impossible, another way to terminate an irrevocable trust is by obtaining an order of the court. This action requires filing a petition and involving the court, even where the court was not overseeing the trusts administration.
- Utilize your powers as a trustee. Depending on the trust, you may have the authority to amend or terminate the trust if circumstances change. Also, if administering the trust simply just no longer makes sense. It is important to consult with an experienced attorney before pursuing termination, as there are serious consequences for improper action.
In conclusion, there are various ways to go about terminating an irrevocable trust. However, we recommend seeking advice from an experienced professional to learn what is the best option for you. Feel free to send us an email today! We would love to hear from you.
AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307