Focused And Personalized Attention
Concerning Your Estate Planning Needs

Do California trusts have an expiration date?

On Behalf of | Aug 19, 2021 | Trust Administration |

When you discover that you are the beneficiary of a trust, you probably have many questions. Generally, people want to know how the document works and whether it contains any special rules beneficiaries must follow.

Two other questions we often hear from trust beneficiaries in Sacramento, California, include:

  • Does my trust have an expiration date?
  • Under what other circumstances can my trust end?

To help you understand trust documents, we will discuss how trusts can terminate or end in California.

Trusts may not last forever

When people create trust documents for a loved one, they may include information on when it will end. For example, a parent may draft a trust for a child that lasts a specific number of years. Other times, the trust maker may stipulate that it will terminate when a specified event occurs, such as a marriage or divorce. Additional circumstances under which a trust may end include:

  • The trust’s purpose has been fulfilled or has become illegal.
  • It is no longer possible to satisfy the purpose of the trust.
  • The trust is legally revoked.
  • The beneficiary can end the trust if its principle has little value (less than $20,000).

A trust can also terminate if all parties to the trust consent and agree that it should end.

If you are a trust beneficiary and do not understand its terms or limitations, consider learning more about California trusts. If you are creating one or more trusts on behalf of your loved ones, you should also make sure you understand how they function and how to ensure they benefit your heirs.

Archives

Let’s Do This Together.

FindLaw Network