A revocable trust, also known as a living trust, is a flexible legal instrument that helps the trust grantor manage and alter the trust with much freedom. A living trust contains several benefits – it allows you to keep your estate private and bypass the lengthy probate process. Furthermore, since the assets in the trust are still under the ownership of the grantor, he or she maintains the right to modify or “revoke” the trust at any time. So how exactly can this trust be revoked? Read on to find out who can revoke a trust, some common reasons why, and what the process involves.

Who can revoke your trust?

If you created an individual living trust, you may revoke it at any time. No one may revoke the trust document on your behalf unless you are specifically granted such authority. 

If you create a shared trust with another person such as a spouse, you both have the right to modify the trust. The terms of the trust are erased, and the property in the trust is returned to each person according to how they were owned before it was transferred to the trust.

Reasons for revoking a trust

It is advised to modify the trust rather than revoke it if possible, but there are situations when revoking is a better, less onerous option. For example, The grantor may decide to make changes in the trust that are so extensive that revoking it all together and creating a new one may be easier. 

Usually, many people revoke a trust due to a major life change. A very common reason is divorce; people are likely to dissolve the trust if it was created as a joint document with their soon-to-be ex-spouse. 

Another reason why you might revoke the trust is that you may have decided to write a will instead.

The procedure:

First, you need to remove all the assets transferred to the trust. To do this, you must transfer ownership of the assets from the trust back to yourself by changing titles, deeds, and other legal documents. 

You must then create a legal document called a “Trust Revocation Declaration” or “Revocation of Living Trust.” This document states that you as the trust creator, with the right to revoke the trust, wish to terminate the trust completely and revoke all terms and conditions. You can create this document through legal websites, local probate courts, or by your estate lawyer. There are many ways to obtain the document but you need to be extra cautious when making sure the document complies with state laws and that it is correctly worded. The Revocation Declaration should typically contain the following:

• The full legal name of the trust, all settlers or grantors, current trustee(s)
• The date the original trust was established and executed, 
• The date the trust was modified (if applicable)
• The location where the grantors are living in: city, county, and state.
• A statement that the trust provides that the grantor has the authority to revoke the trust, wishes to revoke the trust, and revokes the trust entirely.
• A statement that there is no substitution for the trust that is being revoked.

If you are the grantor, you should sign and date the document in the presence of a notary public. If there is more than one, then all granters of the trust need to sign the document for it to be valid.

If the trust you wish to dissolve was registered with a specific court, the document should be filed with that court. If it was not, you can store the document with your original living trust agreement, amendments, and other related estate planning documents.

It is extremely crucial that whenever you make modifications to your estate planning documents, you do so correctly, according to state laws and other regulations. Otherwise, your new changes are not legally enforceable.

You may decide to revoke your trust on your own, but if you require any assistance or have any further questions, feel free to contact Peacefully at [email protected]. We assist with referrals to trusted professionals, offer case-specific advice, recommendations, and coordination for you. To create your Will or Trust, sign up with Peacefully for free.