A family trust is basically created for members of a family to enjoy financial security without the need to manage the funds themselves. The relation may be according to blood, affinity, or law. Most of the time, a family trust is established by a family member to ensure continuity of the family’s finances even when he or she has passed away. Having a family trust account is considered as a good way to pass assets to other family members without family
members resorting to infighting for their share of the money.
The designation of a family trust being a revocable or an irrevocable one is only established upon the creation of the trust. A revocable trust is defined as a trust that can be ended at any time upon the request of the creator, or the one who has given the grant. On the other hand, an irrevocable trust is a trust that necessitates the agreement between both the grantor and the beneficiaries to end it.
•Take the assets out of the trust. Revoking a trust has to start by taking all of the assets out of the trust. It is best to have the assets transferred into a separate account for accounting and audit purposes. Take note that only the name of the creator of the trust must remain. The names of the beneficiaries are no longer needed. For irrevocable trusts, the permission of the beneficiary is needed before the assets can be taken out of the trust.
•Write a revocation of living trust letter. A living trust is a legal form through which you ensure that your business affairs are to be rightfully maintained and conducted by your trustee in the event that you die or become fully incapacitated. The revocation of a living trust gives back the overall control of property to you as specified in the living trust. When drafting the revocation of living trust document, list down the name of the grantor, as well as the date on which it was written. Mention a statement that declares the plan to have the trust revoked.
•Confirm your compliance with the law. It’s best to be familiar with the applicable laws in your state. Confirm your compliance with these rules and regulations. If it is possible, seek legal counsel to have your revocation reviewed before going any further. Remember that there are certain rules that govern trusts, depending on how the state law works. Do not take any step without being sure that you are within your legal rights.
•Work on the revocation. The grantor has to sign the document that states the revocation. The signing has to be notarized, especially if the revocation involves an irrevocable trust.
All of the involved parties must have a copy of the revocation. After the execution of the revocation of trust, the copy of the documentation must be kept by the grantor, the attorneys and the beneficiaries. With the family trust account terminated, the beneficiaries that are once listed as such are no longer granted rights to the trust, in accordance with the revocation.
