How to Dissolve My Revocable Living Trust in California
- Identify the appropriate dissolution procedure.
- Draft a dissolution document according to California Probate Code Section 15401 if no other dissolution procedure is specified.
- Sign the document as the trust’s settlor.
Can beneficiaries terminate a trust?
Usually, the settlor of a trust is the only party who can terminate the trust. However, beneficiaries may be able to terminate the trust if they are not acting against the purpose of the trust and if they reach a majority consensus.
What does it mean to dissolve a trust?
An irrevocable trust is an agreement that manages assets of the trustor, or creator of the trust, for the benefit of the trust’s named beneficiaries. Unlike a revocable trust, an irrevocable trust doesn’t contain a clause that allows the trustor to dissolve the trust at will.
How do you close a trust?
Regardless of the reason, the trustee must be the person who goes to the bank to terminate the account.
- Decide where the account funds are going.
- Gather the trust account paperwork.
- Locate the original trust agreement.
- Go to the bank.
- Destroy any bank cards or checks associated with the account.
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