Setting up a trust is something to think long and hard about, and it is always wise to speak to experts such as those at IWC Probate Services about how you can make your trust as useful as possible to all involved. However, there may come a time when you feel that the trust should be terminated. If this is the case, how can you go about it? Here are some of the ways that it can be done.
In some cases, the trust will be naturally terminated (that is, you won’t have to necessarily do anything and it will come to an end on its own). Situation when this happens include:
A specific event set out in the trust (such as a marriage, for example)
After a certain amount of time
Other Causes For Termination
There are other times when a trust might be terminated. It could be, for example, that the assets that are held in trust diminish significantly in value and therefore the trust must be removed (especially if the trust becomes too small to be of any value, and the administration costs will either wipe it out entirely anyway, or cost more than the value of the trust).
Divorce is another reason. A trust may need to be terminated or modified if a couple becomes divorced but the trust would have meant that one of them would receive part of the estate.
Also, when one of the beneficiaries dies, the trust will need to be terminated and re-created (if necessary). The same is true if a beneficiary chooses to remove themselves from the trust.
*The use of Trusts is a complex matter and often requires the help of a firm of Solicitors.