Depending on the type of trust you’ve created it may be simple or difficult to make modifications to it. In fact, in some situations, you may even revoke a trust altogether.
If you find yourself in any of the following circumstance, it probably makes the most sense to get rid of your trust.
Many people carry the misconception that a divorce will automatically dissolve a trust. However, this is not always the case. Unless you address the conditions of your trust, your ex may end up with all of your stuff!
Some external factors may impact your finances in ways you did not anticipate. For example, a serious health condition, a stock market crash, a bad business decision or a new addition to the family could all cause your funds to plummet.
In these situations, it may not make sense to keep an established trust anymore.
If your status as a business owner has been interrupted, you should revoke your trust fund. Especially if the business is still running with your involvement, you may not want it to receive these funds anymore.
There are a number of modifications you can make to a trust, such as its beneficiaries, the amount distributed, the conditions for distribution, the timing, the approval process and more. If you want to make multiple modifications, it might make more sense to revoke the original trust and rewrite a new one.
By working with an estate planning lawyer, you can get more information about the best course of action to handle your unique situation. An attorney will help you determine if your trust should be modified or revoked altogether.