The basic steps involved in revoking a revocable trust are fairly simple and include the transfer of assets and an official document of dissolution.
A revocable trust, also often referred to as a living trust, is a legal device used to transfer assets to heirs while avoiding the time and expenses associated with probate. A revocable trust is a flexible estate plan that allows the individual who creates it, known as the grantor, to change the trust assets or alter the trust at any point during his lifetime.
Reasons for Revoking a Trust
Common reasons for revoking a trust are a divorce, if the trust was created as a joint document with one's spouse, or simply in the event that the grantor wishes to make changes to the trust that are so extensive that it would be easier to dissolve the trust and create a new one than to make the changes. A revocable trust may also be revoked if the grantor wants to appoint a new trustee or change the provisions of the trust completely.
The first step in dissolving a revocable trust is to remove all the assets that have been transferred into the trust. This involves changing titles or other legal documents to transfer ownership from the trust back to the trust's creator.
Creating a Dissolution Document
The second step in revoking the trust is to have a legal document created that states the trust's creator wishes to revoke all terms and conditions of the trust and dissolve the trust completely. The dissolution document should, at minimum, be signed by the trust's creator with the witness of a notary public. If the trust being dissolved was registered with a court, the dissolution document should be filed with the same court.