A living trust is a legal document that places your assets into a trust for your benefit during your lifetime and specifies where these assets should go upon your death. GetDynasty can assist you in creating a trust, making changes to a trust, or even revoking a trust. It makes sense that you might want to make changes during your lifetime. Perhaps you may have major life changes or even need to disinherit someone. Here’s a look at why and how one might revoke a living trust.
Reasons to Revoke a Living Trust
- Change in Circumstances: Major life changes like marriage, divorce, the birth of a child, or the death of a beneficiary can necessitate a reevaluation of your estate plan.
- Alterations in Asset Structure: Acquiring or losing significant assets may require adjustments to the distribution plan originally set in the trust.
- Relocation to Another State: Different states have varying laws that can impact the efficacy of your current living trust.
- Revised Estate Plans: You might decide to change your strategy for how your estate should be managed or distributed. You also may choose to disinherit a beneficiary.
- Tax Law Changes: New legislation could render the current trust setup less advantageous from a tax perspective.
Revoking a living trust is a serious decision that should be considered carefully. It is essential to consult with legal professionals to ensure that the revocation is carried out correctly and that your assets and wishes are protected according to the most current laws and your personal circumstances. Below are the steps you’ll need to take to make a revocation of your trust.
How to Revoke a Living Trust
- Review Trust Documents: Begin by reviewing the trust documentation to understand the terms set for revocation or amendment.
- Draft a Revocation Declaration: If the trust permits revocation, you must draft a formal revocation document. This should clearly state your intention to revoke the trust and should be signed and notarized.
- Remove Assets from the Trust: Physically transfer all assets back to your personal possession or retitle them in your name.
- Notify Trustees and Beneficiaries: It’s crucial to inform any trustees and beneficiaries that the trust has been revoked to prevent confusion and potential legal issues.
- Destroy the Original Trust Documents: To avoid any misunderstandings, destroy all copies of the trust documents after revocation.
- Consult a Professional: This is perhaps the most critical step. Laws regarding trusts can be complex, and they vary by state. A professional who specializes in estate planning can provide invaluable guidance throughout the revocation process. We can help you with changes or revocation of your trust at GetDynasty.
Whatever your reason, if you find yourself in the position where you need to initiate a revocation of your trust, the steps above will get you started.