Trust Modification and Termination in Bethesda
When a trust no longer meets the needs of the creator, there are options to modify or terminate the trust. However, the specific procedure for modifying or terminating a trust depends on several specific factors. The most important factor is whether the trust is revocable or irrevocable. A well-versed trusts lawyer can further explain the process for the modification and termination of trusts in Bethesda. They can then guide you through the process to help either terminate the trust or change provisions so that it better meets your needs.
Modifying a Trust
In the case of a revocable trust, the document can be amended or modified at any time. The creator of the trust would simply have an attorney either amend the trust and replace the existing provisions or execute a new trust to reflect the person’s current wishes.
However, if the trust is irrevocable, then depending on who is trying to modify the trust, court supervision or court approval might be required. This would require litigation and a petition to the court to have the modification approved. An attorney can further explain the proper procedure to modify a trust based on whether it is revocable or irrevocable.
The Termination Process in Bethesda
According to the provisions of the trust, there might be a natural termination date. Many times, a trust will specifically say that it terminates once all the beneficiaries have reached a certain age. If that is the case, that would be the termination date.
If there is no specified termination date, court approval may be necessary for the trust to be terminated. However, typically there is a provision in the trust that would outline how and when it would be terminated. Usually, it is when all of the assets that are held in the trust are distributed. An attorney can examine the terms of the trust to determine the necessary procedures.
The Effect of the Size of the Trust
If the trust held a lot of financial assets, and if a court was involved in the creation of the trust, the court might need to take a closer look to ensure the trust is being handled properly. However, the size of a trust is generally not going to dictate whether it could be modified or terminated.
If there are a lot of assets and the trust existed for a longer amount of time, then it could take a longer time for the trust to eventually terminate. However, it depends more on a person’s needs. An attorney can explain how the size of a trust may affect its modification or termination.
Get Help with Trust Modification and Termination in Bethesda
The process for modifying or terminating a trust in Bethesda depends on the specific circumstances. For example, the creator of a revocable trust can modify the provisions at any time. However, modifying an irrevocable trust may require court oversight. Because of this, it is important to consult an attorney when modifying or terminating a trust. To discuss your options, call today for a consultation.