How Do You Dissolve An Irrevocable Trust?
Irrevocable trusts are excellent tools for protecting assets and minimizing income taxes. They don’t come without a price, however. By definition, an irrevocable trust cannot be terminated unilaterally by the trustor (the person who created the trust). Instead, an irrevocable trust can only be terminated with consent of the trustee and all of the beneficiaries, or by court order. Contact the trustee and ask whether there are any special requirements in the trust document for how to dissolve the trust. If there are special requirements, you will need to follow those in addition to the steps outlined in this article. Ask the trustee for consent to terminate the trust. Contact each of the beneficiaries and ask for consent to terminate the trust. File in state court a petition to dissolve the trust. This step is only required if the trustee and/or the beneficiaries won’t all consent to dissolving the trust. Obtain court permission to dissolve the trust. This is not an easy process, and it
