Unlike a revocable trust, an irrevocable trust doesn’t contain a clause that allows the trustor to dissolve the trust at will.
However, a trustor might be able to terminate an irrevocable trust by following state laws regarding dissolution.
While laws vary by area, some general requirements must be met in most states.
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.
Can you reverse an irrevocable trust?
Can an Irrevocable Trust Be Reversed? A trust is a legal vehicle that allows you to place assets under the control of a trustee, and have your trustee distribute these assets to your beneficiaries. Two type of living trusts are possible — revocable and irrevocable.
Can you sell a house that is in an irrevocable trust?
“Irrevocable” means what it says””can not be changed. Whether the house can be sold by the trust depends on whether the trust document permits that or not. Even if the house can be sold, the proceeds must remain in the trust. You can put your house into a revocable living trust in order to avoid probate.
Photo in the article by “Wikimedia Commons”