How to Disperse a Living Trust
When you disperse a living trust, you revoke the trust deed upon which the trust was established. To do this, you must fill out several forms and notify the parties involved of the revocation of the trust. Because trusts typically are not recorded, you do not have to notify a court. If a trust is recorded, you'll need to file the revocation of the trust with the County Recorder. A trust grantor can only disperse a living trust that is revocable. In other words, an irrevocable trust cannot be revoked.
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Instructions
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Download and fill out a Living Trust Revocation, a legally recognized instrument used to disperse or revoke a living trust. Document the name of the living trust, the names of the parties involved in the trust and the effective date of the instrument. Identify trust property, and provide a description of real estate property, along with a record of the property's fair market value.
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Sign the Living Trust Revocation in view of a witness. Have the document notarized; a nominal fee may apply.
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Transfer ownership of the assets held by the trust. Download and fill out an Assignment document, which transfers ownership of trust property to a new trust or back to the original owner (i.e., yourself). This includes financial accounts owned by the trust.
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Provide written notification to the parties involved in the trust. State that the living trust will no longer be effective as of the signing date of the Living Trust Revocation form. Explain the grounds on which the living trust is being revoked.
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Relinquish trust property to the new trust. You will have complete control over and access to your assets once transferred back into your possession.
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Tips & Warnings
Bring the Living Trust Revocation with you to close out bank accounts.
Shelter trust documents in a trust portfolio in a fire-proof safe.
File the Living Trust Revocation with the County Recorder's Office. This is only necessary if the original trust document is recorded there.
References
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