Revoking a Revocable Trust
- Posted on: Jul 20 2020
When you create a trust, sometimes you do so with the ability to alter it at any time during your lifetime. Such a trust is known as “revocable.” A revocable trust, often referred to as a “living trust,” is a legal document generally used to transfer assets to one’s heirs in an effort to avoid the probate process, which can cost a lot of money and time. The grantor, the individual who creates the document, can change what’s in the trust as well as its beneficiaries. But while you have the right to revoke the trust, you must first understand why and how.
Why Alter a Revocable Trust?
Once you create a trust why would you want to alter it? There are various reasons as to why a grantor may wish to do so. Generally, such a decision revolves around a life-changing circumstance, such as a marriage, divorce, or birth.
Sometimes revoking a trust just makes more logistical sense. When an existing trust requires a ton of changes, sometimes it’s simpler to revoke that trust and start over with a new revocable trust. Additional reasons for revoking a trust include:
- The desire to appoint a new trustee; or
- The desire to change the provisions of the trust.
It’s important to note that revocable trusts are not exempt from estate taxes. This means that the assets in the trust are looked at as part of the estate, which is taxable.
How Do You Revoke a Revocable Trust?
To legally revoke (dissolve) a revocable trust, you must proceed by taking all of the assets out of it that you had transferred into it. But before a grantor attempts to do so, he or she must make sure that all of the titles, deeds, and other relevant legal documents are transferred back to his or her ownership.
After doing so the grantor must establish a legal document expressing his or her desire to revoke all of the terms and conditions of the trust at large. It is important to ensure that the document meets all relevant state laws in order for it to be properly executed. A qualified estate-planning attorney can help to draft this up for you and will make sure that all assets have been properly transferred as stated.
Once this is finished, the grantor must sign and date the document and it must also be witnessed and notarized. If a trust was registered at a certain court, their dissolution document must also be filed with that specific court. To make sure that you are organized, keep a copy of your dissolution with your new trust documents.
The Law Offices of Brian L. Fox, APLC Help Those in VA to Revoke a Revocable Trust
If you are considering revoking your revocable/living trust, a knowledgeable and experienced Virginia Estate Planning Attorney can help.
At the Law Offices of Brian L. Fox, APLC, we know how important it is to protect what – and whom – you care about. We will help you to dissolve and create a revocable trust that meets your needs and keeps you and your loved ones protected. To learn more or to schedule a free consultation, contact us today!
Brian L. Fox helps his clients with revoking a living trust throughout California including the areas of Santa Barbara County and Ventura County.
Posted in: Estate Planning