What to do when a trust must be revoked
People in South Carolina who have a revocable trust that they want to revoke should take certain steps to ensure that their wishes are carried out. For example, two parents wanted to cancel their revocable trust, in which they had placed their estate that was worth $2 million, and they wondered whether a handwritten letter of revocation would be sufficient.
It is unlikely that this would be the case. Although the parents were going through and removing all their assets from the trust, the trust was still mentioned in their wills. Furthermore, there is always the possibility that a person might forget to remove some assets or that a person might die before removing all the assets. In addition, an older will cannot be reactivated by revoking a later will. In most cases, it is necessary to create and sign a new will.
An attorney may be able to advise people on the best course of action if they wish to revoke a trust. Language in a trust can be complex, and a trust agreement will usually outline the necessary steps for revocation. The trust creators might need to fill out certain documents to revoke the trust. The documents must be prepared correctly, or the trust might not be correctly revoked.
Working with an attorney may also help trust creators determine whether the trust is the most useful vehicle for their estate plan. Trusts have some advantages over wills, such as bypassing probate and providing privacy. They might also be used to manage charitable donations, specify how an irresponsible beneficiary receives distributions or ensure that a loved one with special needs is taken care of without jeopardizing that person’s access to government benefits. There are costs associated with maintaining a trust, so if a person’s estate plan is fairly straightforward, a will may be a better choice.