Trusts are an excellent way to transfer property from one party to another. Not only can trust exchanges occur at any point in the future, but they can also help a family avoid the complications associated with the probate process.
Another important characteristic of trusts is that they are permanent agreements. Unless otherwise stated, a trust will remain in effect until the property officially changes hands. This safeguard helps ensure a beneficiary’s financial security well into the future. However, situations can arise where a change or termination of a trust becomes necessary. Fortunately, a knowledgeable attorney could help you determine whether you are eligible for Mount Laurel trust modification and termination.
Why Would Someone Want to Modify or End a Trust?
In most cases, the party creating a trust understands that the agreement will be permanent. However, state laws recognize that circumstances can change. Therefore, modifying or terminating a trust might be a necessary action.
The reasons why a party may want to change a trust can vary. If an author creates their document with a revocability clause, they may simply decide to terminate the arrangement. In these situations, they can end the agreement without going to court.
In other circumstances, altering a trust might require court intervention. This might happen when a trustee no longer feels that a trust is serving its core purpose or when changes are necessary to ensure that the arrangement is properly administrated.
A diligent attorney in Mount Laurel could work with beneficiaries, trust makers, and administrators to determine whether a termination or modification of a trust is in everyone’s best interests.
How Can Someone Change or End a Trust?
The specific process for modifying or terminating a trust depends on whether the relevant parties agree to the changes.
For example, New Jersey Revised Statute § 3B:31-27 says that if a trustee and all the beneficiaries agree to modifications, the trustee may act on their own to terminate the arrangement. Similarly, if all beneficiaries agree that a trust should come to an end, they can ask a court to effectuate this change, regardless of whether the trustee is on board.
In contrast, when not all beneficiaries are on the same page, state laws establish that a court may agree to a termination or modification if the moving parties can demonstrate that it would be legally possible to effectuate the change had all parties agreed. Additionally, people petitioning for the change must also be able to prove that the beneficiaries who did not agree would not suffer any undue harm because of the alteration.
A detail-oriented lawyer in Mount Laurel could help a trustee accomplish all the prerequisite conditions necessary to modify or terminate one of their family’s trusts.
Contact an Attorney about Mount Laurel Trust Modification and Termination
One of the main advantages of creating a trust is that it is a permanent arrangement. Unless all the relevant parties agree to alter or end the agreement, that trust remains in effect regardless of any outside interference.
However, trusts can be surprisingly flexible. If all beneficiaries and the trustee agree, an author can modify or even end the trust without going to court. If you need help with Mount Laurel trust modification or termination, a seasoned lawyer could be a valuable ally. Call the office today to learn more about your options.