When Does a Trust Terminate?

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What Is a Trust?

A trust is a type of legal financial arrangement in which trust property (the "res") is transferred to one party who will hold the property for a while until they transfer it to another party. The party holding the property is called the trustee, while the party that ultimately receives the property is called the beneficiary. The party that originally owned the property is called the trust creator.

Creating a trust may be necessary for various reasons, such as protecting the property, creating conditions under which the property can be transferred, and making sure beneficiaries don’t receive the property in a premature manner.

When Does a Trust Terminate?

Normally, a trust terminates when the property is transferred from the trustee to the beneficiary. The time frame in which this happens all depends on the terms of the trust. For instance, the trust instructions may state "the property is to be transferred to the beneficiary when they reach age 21", or, "the property should be transferred on [date]". This all depends on the needs of the parties.

In addition, trust termination can happen for various other reasons, such as:

What If I Have a Dispute Regarding Trust Termination?

Trust disputes are generally resolved by filing a lawsuit in court. Depending on the type of conflict, the remedies can vary. They may involve remedies such as:

Thus, a trust termination dispute can often require the assistance of a professional, since many different parties may be involved.

Do I Need a Lawyer for Help with Terminating a Trust?

Terminating a trust can have major effects on the rights of beneficiaries. You may need to hire a lawyer for assistance if you need to terminate a trust or if you have legal issues involving a trust termination. Your attorney can provide you with legal assistance and can represent you during trial so that your interests are fully protected.

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Last Modified: 10-03-2016 09:43 PM PDT

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