How to Terminate a Trust Early in Kansas
In most cases, a trust is a legal arrangement whereby an individual, or entity, holds the title to assets or property and is legally obligated to protect and/or use the assets or property for the benefit of another person or group of people. In Kansas, most trusts can be modified or terminated by the settlor, the person who made the trust, at any time. An irrevocable trust, despite the name, can also be terminated; however, terminating an irrevocable trust requires court approval and often requires the consent of all beneficiaries.
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Instructions
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Determine on what basis the trust may be legally terminated. In Kansas, an irrevocable, noncharitable trust may be terminated by consent of all beneficiaries and the settlor for any reason, or by consent of the beneficiaries if continuing the trust is not necessary to achieve any material purpose of the trust. A noncharitable Kansas trust may also be terminated if the circumstances have changed, making termination the best way to further the purpose of the trust. Finally, a trust may be terminated early if the value of the trust no longer justifies the costs of administration.
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Obtain the consent of the beneficiaries or notify the beneficiaries if required. Consent should be obtained in writing and notarized. If the basis of the petition to terminate the trust is that the value no longer justifies administration, consent is not required but the beneficiaries must be notified of the petition.
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Draft the petition to terminate the trust. There are no court forms available for the petition. You may wish to purchase a form or obtain the services of an attorney. The petition will need to include basic information about the trust such as the starting date, value of the assets, and names of beneficiaries. The petition will also need to tell the court what the legal basis is for termination.
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Attach a copy of the original trust document as well as the original consents obtained if applicable or proof that notification has been given to the beneficiaries.
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Make several copies of the petition and attachments. The original and one copy will be filed with the court. Give each beneficiary a copy and retain a copy for yourself.
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File the petition with the probate court where the original trust was recorded and pay any required filing fees. Filing fees may vary by county.
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Tips & Warnings
Although the consent of the beneficiaries is required under certain circumstances, the court may approve a petition without the consent of all beneficiaries if the court decides that termination would be legal had all the beneficiaries consented and the interests of a beneficiary who has not consented will be protected if termination is approved.
A charitable trust cannot be terminated. If the original intend cannot be fulfilled, the court will generally modify the trust to fulfill an alternative charitable purpose.
A trust is a complicated and important legal document. The advise and assistance of an attorney is recommended.
Only the settlor may petition to terminate a trust if termination is not consistent with the material purpose of the trust.
A trustee or qualified beneficiary may petition for termination for any of the other legal reasons unpon which termination can be granted.
