The steps for revoking a revocable living trust are relatively simple, namely executing an official document of dissolution and the transfer of assets. A revocable trust refers to a legal entity with a financial structure that allows the person who creates it, known as the grantor, to alter or remove the assets that they placed inside the trust at any time. Furthermore, this person also has the ability to revoke the trust entirely, meaning that the trust would no longer exist.
In New York, the grantor has the right to make just about any change to their trust including altering the beneficiaries, trustees, or any of the property in the trust, and just about anything else. In addition, the grantor can also dissolve the trust completely if that plan no longer meets their estate planning needs.
A revocable trust is frequently used as a method to transfer assets to heirs while avoiding the expenses and time associated with probate. Income earned over the life of the trust is distributed to the grantor and only after this person passes away does the property transfer to the beneficiaries.
The first step in dissolving your revocable trust is to remove any of the assets that have been transferred into it. The second step is to complete a formal revocation form stating your desire to dissolve the trust. In some cases, this might need to be filed with the local probate or estate court.
Revocation of a revocable living trust is usually related to a life change, such as a divorce or sale or transfer of the trust property. Other times the need to make extensive changes to your trust makes it easier to dissolve it and start afresh. For the purpose of both revoking the former trust and creating a new one, it’s beneficial to have the support of an experienced estate planning attorney in NY.