How to Settle & Close a Living Trust
A living trust is a legal instrument that holds title on properties such as real estate and high-value assets. A trustee manages trust property during the settler's lifetime. Upon the settler's death, the trustee of the trust settles the trust. Once all trust property is distributed in accordance with the trust deed, the trustee will close the trust. The process can take anywhere from several weeks to several months or more.
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Instructions
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1
Give beneficiaries and trustees of the trust written notice of administration upon the settler's death.
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2
Identify and take control of trust property. Hire a private asset search firm to uncover missing trust property, if necessary.
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3
Search the settler's home for undisclosed financial records, dividend checks and income tax returns. Shore up loose checkbooks, insurance policies and trust deeds. Organize trust documents by date in a trust portfolio.
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4
Obtain an appraisal of all trust property, including real estate property, automobiles and collectibles. Place all appraisal reports in the trust portfolio.
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File state and federal income tax returns. A tax attorney can determine the tax bill owed for your trust's tax bracket. Federal tax information is published on the Internal Revenue Service website.
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Distribute trust property while minimizing taxes for the beneficiaries of the trust.
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7
Print a Living Trust Revocation, an instrument used to revoke a joint living trust. Enter the trust name, the names of the parties involved in the trust and the revocation date.
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Sign and date the Living Trust Revocation instrument. Hire a notary public to notarize the instrument.
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Serve a written notice of revocation on the parties involved in the trust.
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