Q:

How do you dissolve a trust fund?

A:

Quick Answer

To dissolve a trust, the trust's grantor transfers all assets of the trust back into the trust fund owner's name, completes a Revocation of Trust form and submits it to the court where the trust is filed, according to Legal Zoom. The grantor is usually the trust owner.

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Full Answer

In cases where the grantor is not the trust owner, the trust owner must instruct the grantor to dissolve the trust, Legal Zoom notes. Trust owners uncertain if they are the grantor should consult with an attorney. A trust cannot be legally dissolved until all assets are transferred out of the trust because until the assets are removed from the trust, the trust is considered the legal owner of all property contained within it.

Revocation of Trust forms can be obtained through the court where the trust is filed or through an attorney, explains Legal Zoom. A revocation of trust form indicates that the grantor is electing to dissolve the trust and has the legal authority to do so. The document must be signed and notarized.

Unless stated otherwise, living trusts are fully revocable, explains Legal Zoom. A trust is a contract that transfers the owner's assets into the trust to prevent the estate from being subject to probate after the owner's death.

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