A family trust will is also known as both a living trust and as a revocable living trust. It is a legal document that holds title or ownership to your real property and other assets. When you create a family trust will, you transfer ownership of your assets to the trust. This document looks similar to a will. However, unlike a will, a properly funded trust will not go through probate and will prevent the courts from controlling your assets should you become incapacitated. The trust gives you control over the assets you leave to your minor children or grandchildren.
Consult your state laws to determine whether you have statutory authority to dissolve your family trust will. Every state has its own set of statutes relating to trusts. Determine the manner of distributing the trust assets.
Review your family trust will for instructions on when and how to terminate and dissolve the trust. Contact all beneficiaries, if instructed to do so. Distribute the assets according to the terms of the trust.
Comply with a court-ordered dissolution. Attend any scheduled hearings or meetings. Prepare and file any final tax returns that may be due to the Internal Revenue Service. Read instructions to determine whether you need to file a Form 1041.
Seek the consultation of a Trust and Estate Attorney to assist you with this task, to make sure that you are proceeding properly as the fiduciary of the trust.
Tips and warnings
- Seek the consultation of a Trust and Estate Attorney to assist you with this task, to make sure that you are proceeding properly as the fiduciary of the trust.