How Does a Trust End?

In a trust, the original owner of the property or the grantor transfers his property to a trust which will then be managed by another person or a trustee whom he chooses. The trust is established for the benefit of another or the beneficiary. How the properties in the trust are used are specified within the trust document or trust instrument.

Having trusts is one of the effective ways of managing your property, especially if you consider the possibility of not being able to do it yourself later on. However trusts don’t last forever.

Ways a Trust Can End?

One way in which a trust ends is when all the properties within it are gone. The trust has no more value if there are no assets or properties in it. If the trust contains assets such as money, for example, and all of it has been transferred to the beneficiaries, then the trust ends. Or if it includes a physical property such as a house or a car, the trust may end when the property is destroyed. The trust may also end in itself if the grantor specified so.

The grantor has the power to assign a specific date or condition in which the trust must end. The date is self-explanatory; and the condition is something that if met, then the trust ends. For example, the grantor may specifically state that the grant ends as soon as the child gets married, or finishes a college degree, etc.

What Happens after a Trust Ends?

If the trust ends and there is still property within the trust, then it is the responsibility of the trustee to distribute what remains of the property. There are some trust documents that include specific instructions on how the assets need to be distributed, which is a really wise choice. But if there are no specific instructions, the beneficiaries get to decide how they could divide the properties among themselves. Lawyers are not required in this process, but it is still helpful to consult one at the end of a trust. An estate planning attorney would be especially helpful in these matters and to know your rights as a beneficiary.

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