How to Nullify a Living Trust
An individual creates a living trust while he is still alive. The trust creator transfers ownership of his assets to the trust. Living trusts are sometimes created for people, such as the elderly or disabled, to protect their assets and ensure they are used for the person's benefit. The reasons to nullify, or revoke, a living trust vary. Those who purchase services from attorneys or salespersons might discover that they are not happy with the product. Needs change and a person might want to cancel a living trust and start over. Whatever the reason, nullification of a living trust is a legal action that requires proper documentation and notification of all parties.
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Instructions
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Cooling Off Rule
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Assert your right to cancel the contract and a recently purchased living trust by using the "cooling off rule," which allows you three days to cancel if you purchased a living trust product in your home or in a location other than the salesperson's place of business.
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Use the cancellation form provided at the time of the sale. If you do not have the form, mail a letter to the seller of the living trust stating that you are exercising your right to cancel. You are not required to give a reason for cancelling.
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Stop payment on any check or other type of payment you made for the living trust. You can dispute credit card payments that are not credited to your account after your cancellation.
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Contact your local consumer protection agency if you have problems using the cooling off rule and the right to cancel within three days. The Federal Trade Commission and USA.gov provide a page on their websites with links to the state and local consumer agencies.
Revocation
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Transfer the property or assets in your living trust back to yourself. As trustee and grantor of the living trust, you have the authority to perform this transfer which returns to you the assets you placed into the trust when it was created.
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Prepare a statement or form called Revocation of Living Trust. Check with your local court to find out if it has a form for this purpose or if it provides the required wording for the form.
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Sign the Revocation of Living Trust form in front of a notary public and have the form notarized.
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File the revocation form with the court in which you originally filed your living trust. This is usually the probate court in your county of residence.
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Send certified copies of the revocation documents to anyone with an interest in the living trust, such as banks, creditors and beneficiaries.
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Tips & Warnings
Contact the local court, which is the probably the probate court, in which you filed your living trust and ask about specific procedures or forms for nullification or revocation of a living trust.
If you are not the trustee of your living trust, you may need to complete and send a signed and notarized Revocation of Living Trust Agreement form to the trustee requesting return of all assets and dissolving the agreement between you and the trustee.
You may not be able to move assets from a living trust that was created as an irrevocable trust. Talk to your local court or an attorney about whether you can nullify an irrevocable trust.
Consult an attorney to ensure that your legal documents are prepared and filed correctly.
References
Resources
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