A revocable or living trust is only active with terms established by the trust creator known as the grantor. The grantor retains the ability to update the terms of the trust, the beneficiaries on the trust or even the existence of the trust at any point in time during their life.
There are a few different reasons why someone might wish to revoke a trust. It usually involves a major change in their life that renders the assets placed inside the trust problematic or different goals in their estate planning process calling them to revise their strategy.
A trust can be revoked simply because the grantor wishes to make extensive changes for which it would be easier to dissolve the entity entirely. A revocable trust can also be revoked if the provisions of the trust need to be updated by the grantor or if the grantor intends to appoint a new trustee.
One of the most important things to remember about revoking a living trust is that in order for it to be properly funded, assets must have been placed inside the trust.
The removal of these assets from the trust is a critical component of formally revoking a living trust. This ensures that the assets can then be transferred to any other entities or managed in your estate properly. For assistance with revoking a trust or the establishment of a new trust, schedule a time to meet with a lawyer in Pasadena.