The most popular type of trust is a revocable living trust, and most of these trusts close 6 to 12 months after the trustor's death. Now that you understand some of the reasons why you might consider creating an active trust, let's discuss the issue of termination. An active trust is revocable, meaning you can revoke it at any time and it will no longer exist. A revocable living trust becomes irrevocable immediately after the death of the grantor.
This means that no one can revoke any assets held in their trust or add new ones. Nor can anyone make any changes to the designations of their beneficiaries. The terms of the trust simply become immovable once the grantor passes away. A revocable or “living” trust is a type of trust that the grantor can change during their lifetime.
Once the trust has served its purpose and the assets are fully distributed, the trust ends naturally. The first thing to know is that an active trust is a versatile legal document that can be effective for people who find themselves in many different situations. I had previously created a trust for myself at Legal Zoom, but there is no comparison to the level of service and professionalism that Collins Law Group embodies. Keeping your living trust up to date ensures that no one is left out and that all the assets you want to protect are accounted for after your death.
Since most families can manage their estate with a revocable active trust, they don't have to worry about any of the problems that can arise when managing a trust in perpetuity, and they won't have to worry about whether their trust might expire. These types of perpetual trusts include dynasty trusts, which are designed to help families manage generational wealth, as well as some other types of irrevocable trusts. If you want to create a revocable active trust or modify your current one, consult the experienced estate planning attorneys at Phelps LaClair. If you have more questions or concerns about how a living trust is terminated, contact the specialized agency Port St.
If you decide to create a revocable living trust through Trust & Will, here's what you need to know about the duration of your trust. For example, a trust may stipulate that the beneficiary's assets remain in the trust until they reach a specific age or achieve a specific goal, such as graduating from college or getting married. The conditions of a trust can also determine when the trust expires, by including a specific date on which the trust will be canceled or by including a trigger that causes the trust to be terminated. Most revocable living trusts, for example, are designed to transfer assets to designated beneficiaries after a person's death.
If you're thinking about adding a revocable trust to your estate plan, it's important to understand what will happen to it after you die. The most common type of revocable living trusts close 6-12 months after the death of the grantor and become irrevocable at this point. This means that no one can revoke any assets held in their trust or add new ones, nor can anyone make any changes to the designations of their beneficiaries. If you want to create an active revocable living trust or modify your current one, consult with experienced estate planning attorneys at Phelps LaClair or contact specialized agencies like Port St for more information on how these trusts are terminated.
Additionally, if you decide to create a revocable living trust through Trust & Will, make sure you understand all conditions and stipulations regarding its duration.
