If you include a trust in your Illinois estate plan, you may later want to revoke it. In the case of revocable trusts, the grantor, or person who created the trust can terminate the trust in his or her lifetime. Whether you have a trust already or wonder about whether you can revoke the trust in the future, the difference between an irrevocable and revocable trust is key. If you have a revocable trust, you may revoke it in your lifetime. Irrevocable trusts, on the other hand, are precisely what they say they are. They are irrevocable.
In terms of irrevocable trusts, Investopedia claims that you must include an official document of dissolution and a transfer of assets. Revocable trusts are flexible, but to revoke them, you must have a reason first. Most people decide to revoke a trust during a divorce. You may also want to revoke the trust to change it or because you want to appoint a different trustee.
To start, you have to transfer assets. You remove all assets that you transferred into the trust. You would have to change titles and other legal documents to transfer the ownership from the trust and to you. Next, you create the dissolution document. This document states that you want to revoke the terms of the trust and completely dissolve it. You will have to sign the document and so will a witness. If you registered your trust with a court, then you should file the dissolution with that same court.
None of the above information is meant to be interpreted as legal advice. It is for informational purposes regarding dissolving trusts.
