One of the final steps a trustee must complete when closing a trust is executing documentation to dissolve the trust. This article provides information how to create a written record of the dissolution of a trust. A sample Trust Dissolution Form is included. Please carefully review all instructions outlined below for using the Trust Dissolution Form AND consult a trust attorney before signing any trust documents. Before printing your Trust Dissolution Form, review the list of related forms that are often used to administer and settle a trust on our
forms for trustees page.
Trust Dissolution Form Instructions
1. Executing legal documents to close a trust may have serious consequences to parties with an interest in the trust. A trustee should not take any action to terminate, dissolve or close a trust without consulting an attorney. Ask a lawyer whether you have completed all necessary trust administration steps before you sign a trust dissolution document.2. Before closing a trust, a trustee must typically distribute trust assets to beneficiaries or make other transfers or distributions as required by the trust document and applicable state law. See Trust Distribution Letter. In addition, a trustee typically must provide notice to beneficiaries that the trust will be dissolved. If you have not completed these steps and trust property has not been distributed, you may need to obtain professional legal help before you close the trust. When a trust is dissolved, the trustee should take all necessary steps to close trust accounts at banks, brokerage firms, and other financial institutions at the appropriate time.3. If administration of the trust is being supervised by the local probate court or another court, you may need court approval to dissolve the trust. In these circumstances, a trustee may be required to petition the court for an order to close the trust and distribute trust assets. Additional steps are sometimes required to terminate a trust.4. The legal requirements to dissolve a trust are different from state to state depending on state trust laws. For example, to be valid, this type of trust administration document may need to be notarized, signed by certain persons as required by law, filed with the court, etc. The Trust Dissolution form shown below is for educational purposes only. To ensure you complete the correct paperwork to end a trust, have your dissolution document drafted by a licensed
probate lawyer. Also, review the entire trust document to determine if any clauses or provisions discuss dissolving or terminating the trust. If there was a trust amendment or restatement of trust, make sure the Trust Dissolution document has the correct information.5. If there is more than one trustee of the trust at the time the trust is dissolved, the Trust Dissolution form should include a signature line for each co-trustee and should typically be signed by all acting trustees. Trustee signature requirements may vary based on the type of trust, reasons for dissolving the trust, applicable state laws, and any court orders issued in regard to the trust. For more on this topic, see
How to End a Trust.6. Keep the original Trust Dissolution form with other trust documents and records in a secure location. The trustee should keep detailed records on the reasons for dissolving the trust. Retain copies of all communications or correspondence with beneficiaries and other interested parties regarding dissolution of the trust. If you have questions about what records to maintain, consult an attorney.
Trust Dissolution Form
The template below contains sample language to dissolve an estate planning trust. Insert all necessary information in the form as indicated below and review the instructions on this page before executing the form. An example of a completed Trust Dissolution Form is also shown below.BEGINNING OF FORM:DISSOLUTION OF TRUSTThe insert full name of the trust created on insert the month, day, and year the trust was made by the grantor or grantors OR settlor or settlors, insert full name of all grantors or settlors in insert the county and state where the trust was made is dissolved effective on the date hereof.Signature insert signature line for the trusteeinsert full name of trustee, TrusteeExecuted on the insert day of insert month, insert year in the County of insert name of County where form is executed, State of insert name of State where form is executed.
END OF FORM Copyright 2020 Pennyborn.com. ALL RIGHTS RESERVED.The Trust Dissolution Form was published by Pennyborn.com on November 15, 2018.
Sample Trust Dissolution Document
The following is an example of a completed Trust Dissolution form for a Revocable Living Trust:DISSOLUTION OF TRUSTThe John Thomas Allen Revocable Living Trust created on February 2, 2020 by the Settlor, John Thomas Allen, in Maricopa County, Arizona is dissolved effective on the date hereof.Signature LineTerry Stewart, TrusteeExecuted on the 15th day of March, 2020 in the County of Maricopa, State of Arizona.
Paperwork to Close a Trust
One of the most common questions about trust administration is how to wind up or dissolve the trust after the trust is no longer needed or the purpose of the trust has been fulfilled. It is essential to properly complete all paperwork required to settle the trust, including sending notices to beneficiaries, closing trust accounts, transferring title to property, and dissolving the trust. Did you discuss obtaining a release from beneficiaries with your attorney? To avoid overlooking or skipping an important step, review our
successor trustee checklist form.Another critical step in administering a trust is ensuring all federal and state tax returns are filed. See Schedule K-1 Trust Estate. Before closing the trust and trust accounts, contact the accountant or tax preparer that assisted with your trust accounting and tax returns to ensure all outstanding tax issues are addressed.Updated March 27, 2020.
INFORMATION ON THIS SITE, INCLUDING ARTICLES, ESTATE PLANNING FORMS, AND THE ESTATE PLANNING BLOG, DOES NOT CONSTITUTE LEGAL, FINANCIAL OR TAX ADVICE. Pennyborn.com is not a law firm and is not a substitute for a lawyer. Your use of this site does not create an attorney-client relationship. Information on this site is for educational purposes only and may not be accurate, complete or up to date.
For information about Pennyborn.com and how to advertise on this website Contact Us.