How to Cancel an Irrevocable Trust

by Beverly Bird ; Updated April 19, 2017

The concept of committing to something forever can be especially daunting when you change your mind after the fact. For all practical purposes, when you place your assets into an irrevocable trust, you give up both control and possession of them for good. However, as more individuals turn to trusts for estate-planning purposes, some states have added legislation providing ways to undo them, even if you initially intended the trust to last until your death and possibly longer.

Step 1

Call a meeting of all the beneficiaries named in your trust, as well as the person you named as trustee. Explain that you’ve had a change of heart or a significant change of circumstances that requires you to revoke the trust. Most states allow you to do so if all beneficiaries agree in writing.

Step 2

Write a paragraph stating in clear language that you are revoking the trust, that you have spoken personally with each beneficiary and that each has consented to the action. Make signature lines for each beneficiary on the left side of the page and a signature line directly opposite it for a notary public to witness the beneficiary’s signature and notarize it. If you’ve named too many beneficiaries and all their signatures will not fit on one page, do a separate page for each of them. Repeat your paragraph and signature lines on all pages and make one for each beneficiary. Do the same for your trustee.

Step 3

File the consent or consents with the court that recorded your irrevocable trust when you created it. Check with the clerk when you do this to find out if your state is one that requires the court’s approval in addition to the consent of your beneficiaries. In some states you might have to file a motion and request a hearing with a judge expressly granting you permission. The judge will then issue an order allowing you to revoke your trust if everyone agrees and if he thinks it's in the trust's best interest.

Tips

  • If even one of your beneficiaries does not consent to the revocation, the court won't allow it. If this happens, you might have one other option. The person you named as trustee usually has complete authority over your trust and its assets. The trustee can create a second trust and either sell or transfer the assets from the first one to the new one. He can create the second trust with more favorable terms to your current situation. This might allow you to reach some of your assets, change beneficiaries or make other changes to accommodate your change of heart. If your beneficiaries won't consent and this is something you’re forced to consider, speak with a professional to make sure it’s possible in your state. You would also need the agreement of your trustee. When you created the trust, you gave him control, so you can't make this sort of move without his cooperation.

Video of the Day

Brought to you by

References

About the Author

Beverly Bird has been writing professionally since 1983. She is the author of several novels including the bestselling "Comes the Rain" and "With Every Breath." Bird also has extensive experience as a paralegal, primarily in the areas of divorce and family law, bankruptcy and estate law. She covers many legal topics in her articles.

Cite this Article | raiffeisen-cards.ru A tool to create a citation to reference this article Cite this Article

Related pages


quieting title definitionhow does an escrow account work for property taxescampbell soup benefitseasement adverse possessioncan you use a savings account for paypalscholarships from coca colawalmart eye care appointmentcommodities cnnpayroll calculator bankratebofa visa carddefine accrued revenuepro forma balance sheet templatewhat is the difference between communism and capitalismvertical analysis definitiondiscover cash advance atmcusip licensecomputation of roidual currency swapsimple ira to traditional irafood stamps nyc application24.9 apr credit cardhow to calculate owners equityconcessional meaningunderwriter for home loanshow to calculate dividend payouthow does dui affect insuranceif i win the lottery how much goes to taxeshow is a signing bonus taxeddifference between deed of trust and warranty deedhow long does a derogatory stay on your credit reportdefensive stocks listflorida statutes of limitations on debtdifference between foreign direct investment and foreign portfolio investmenthow to claim lottery prize moneyhow to find coupon rate on financial calculatorreporting k 1 on 1040calculate portfolio betaintestate californiasallie mae direct loansis debit card considered a credit cardcredit score 698how to apply for temporary rental assistance in njcommon stock outstanding formulacap one auto finance payoffmarried filing separately itemized deductions splittenants by severaltyvalue 1878 silver dollarmoney order status uspsherfindahl index calculatorfinancial assistance for widows of veteranshow to buy tax liens in texasbank of america debit cards choiceswhat does ach stand for on bank statementcitibank credit card cancellationstatute of limitations illinois credit card debtfuture value calculator with inflationselling vacant land by ownerdoes food stamps affect financial aidcommingled funds divorcewhat is a good gross rent multiplieraccounting entry for deferred tax assethow to calculate herfindahl indexcaptive agent vs independent agentdrawings in trial balancewhat is the difference between accrual basis and cash basisbank of america deed in lieuhope for addiction scholarshipdividends on preferred and common stock exampleunknown interest rate calculatorcommon stock balance sheetfha addendum to sales contractconverting annual salary to hourlybond futures trading strategiesis an ira a liquid assetsocial security and 401k withdrawals