A revocable trust is flexible, which is why it remains one of the most popular estate planning choices for individuals and families. As opposed to an irrevocable trust, assets held in a revocable trust can be added or removed at any time by the trustee. Because of this flexibility, most trustees are the person who initially created the trust.
Creating a revocable living trust in New Jersey takes some time and planning. You will almost certainly need a lawyer to help with the process. Once completed, you can feel peace of mind having completed your objectives. However, you might wonder whether or not your revocable living trust can be terminated.
A revocable living trust can be terminated at any time by the trustor while they are alive. If they pass, the ability to run the trust passes to the successor trustee. Some trustors will choose to have the trust automatically terminate when they die. There are benefits to choosing the option, and an estate planning lawyer can explain these.
Terminating a Revocable Living Trust
When the trustor (creator of the trust), who is also the trustee (person who manages the trust), would like to terminate the trust, he or she can do so at any time. The process often includes the following:
- Transferring any assets held in the trust back to the trustor or other individuals (upon the request of the trustor)
- If needed, formally and legally revoke the trust.
Terminating the Trust After the Trustor Dies
When the trustor passes away, the revocable trust becomes irrevocable. It is essential to clarify with the investment institutions who now serves as the trustee.
Why Terminate a Revocable Living Trust
Most people who choose to terminate a revocable living trust decide because the purpose or intention has been fulfilled. Often this intention is regarding the distribution of assets. That said, it is certainly possible to revoke trust for other reasons, including:
- There have been significant changes during the trustor’s lifetime, such as a marriage, divorce, or death of an heir.
- The trustor would like to make substantial changes to the trust, and a lawyer recommends terminating the current trust and creating a new one.
Would you like to terminate your revocable living trust? Are you contemplating updating your plan? Please reach out to Klenk Law. We can help!
Call Klenk Law Today For Assistance
Many families are looking for a more private process after their passing. When a will passes through probate, the process becomes public, meaning anyone can access your estate’s contents. Developing a trust not only safeguards assets from probate it also ensures a private process. Protect your rights and assets with a revocable living trust established by our New Jersey revocable living trust lawyer; schedule an appointment with our team at Klenk Law today. We are happy to answer questions about Revocable Living Trust New Jersey.