Revoking your Living Trust
Reasons for the Revocation of a Living Trust
The Right to Revoke a Living Trust
Transfer of Trust Property upon Revocation
Practicalities
Notarization of the Revocation
Reasons for the Revocation of a Living Trust
Living trusts can usually be revoked at any time, but before you do so you should carefully rethink this option, because revoking a living trust not only requires some work but also renders your previous estate planning efforts redundant. As an estate planning lawyer of San Francisco I know, that mostly an amendment or restatement of the existing living trust is preferable, that adjusts the terms of the trust to the new situation.
Nevertheless there are some reasons that might make a revocation necessary. The most common reason is divorce. It is very likely that – after a sad end of a marriage – the estate planning of both partners must be redone, as the future plans of the divorced couple change.
Upon divorce some state laws stipulate the automatic revocation of those provisions in a living trust that regard the spouse. However in most cases it is better do revoke the existing living trust than to rely on the statute law.
The Right to Revoke a Living Trust
Like an amendment, a revocation of a living trust can only be carried out by entitled persons. As far as there is only one grantor, this person can revoke the trust. If there are more grantors, the right to revoke a trust depends on the terms of the living trust. Usually each grantor keeps the right to revoke the trust without consent of any other person including the co-grantor. In these cases both grantors can revoke the living trust independently.
There is one exemption. If the trust is set up as an irrevocable trust or the trust has become irrevocable (e.g. a part of an AB Trust after the death of one spouse), usually it cannot be revoked any more.
Transfer of Trust Property upon Revocation
Before the grantor revokes the living trust it is usually advised that all property held in the trust is transferred out of the trust. The trust assets should be retransferred to the original owners, to the status quo before the trust was created. As the grantor is usually also the trustee of the living trust, he has generally the power to do so.
Practicalities
The revocation is done with the signing of a trust revocation declaration. Samples of those can usually be found on the internet free of charge. Revocation follows the same basic principles as an amendment to the trust. Therefore it is also important to precisely identify the trust that is being revoked.
Notarization of the Revocation
Like amendments to the trust, the document containing the revocation should be notarized in order to avoid later disputes about the revocation’s validity.
The Right to Revoke a Living Trust
Transfer of Trust Property upon Revocation
Practicalities
Notarization of the Revocation
Reasons for the Revocation of a Living Trust
Living trusts can usually be revoked at any time, but before you do so you should carefully rethink this option, because revoking a living trust not only requires some work but also renders your previous estate planning efforts redundant. As an estate planning lawyer of San Francisco I know, that mostly an amendment or restatement of the existing living trust is preferable, that adjusts the terms of the trust to the new situation.
Nevertheless there are some reasons that might make a revocation necessary. The most common reason is divorce. It is very likely that – after a sad end of a marriage – the estate planning of both partners must be redone, as the future plans of the divorced couple change.
Upon divorce some state laws stipulate the automatic revocation of those provisions in a living trust that regard the spouse. However in most cases it is better do revoke the existing living trust than to rely on the statute law.
The Right to Revoke a Living Trust
Like an amendment, a revocation of a living trust can only be carried out by entitled persons. As far as there is only one grantor, this person can revoke the trust. If there are more grantors, the right to revoke a trust depends on the terms of the living trust. Usually each grantor keeps the right to revoke the trust without consent of any other person including the co-grantor. In these cases both grantors can revoke the living trust independently.
There is one exemption. If the trust is set up as an irrevocable trust or the trust has become irrevocable (e.g. a part of an AB Trust after the death of one spouse), usually it cannot be revoked any more.
Transfer of Trust Property upon Revocation
Before the grantor revokes the living trust it is usually advised that all property held in the trust is transferred out of the trust. The trust assets should be retransferred to the original owners, to the status quo before the trust was created. As the grantor is usually also the trustee of the living trust, he has generally the power to do so.
Practicalities
The revocation is done with the signing of a trust revocation declaration. Samples of those can usually be found on the internet free of charge. Revocation follows the same basic principles as an amendment to the trust. Therefore it is also important to precisely identify the trust that is being revoked.
Notarization of the Revocation
Like amendments to the trust, the document containing the revocation should be notarized in order to avoid later disputes about the revocation’s validity.
