How to dissolve a trust fund early

The process of dissolving a trust fund can be legally complicated but it is possible. As long as the creator of the trust is alive, you will not be able to challenge the fund set up. However, once the creator of the trust fund dies, you may be able to dissolve it by challenging its legal framework. The trust fund can be dissolved early if the trust document permits early access or if you receive a court order to dissolve it.

Contact all beneficiaries of the fund and let them know of your intention to dissolve the trust. It will be easier to dissolve it if all beneficiaries are in agreement.

Review the trust document for any provisions regarding dissolution. See if the trust creator gives an option to end it early.

If the trust allows for early access, distribute the property to the beneficiaries according to the trust's terms.

If there is no provision to dissolve it early in the trust document, you will need to challenge it in court. Hire an estate lawyer and take your challenge of the trust document to the state courts.

If the court agrees to dissolve the trust, distribute theassets according to the court order. If the court does not agreet, you will not be able to dissolve the fund early.

Cite this Article A tool to create a citation to reference this article Cite this Article

Things Needed

  • Trust Document
  • Lists of Trust Assets

About the Author

David Rodeck has been writing professionally since 2011. He specializes in insurance, investment management and retirement planning for various websites. He graduated with a Bachelor of Science in economics from McGill University.

Try our awesome promobar!