<#if page.ID == "About"> In This Section
<#else> View Our Practice Areas

What To Do When You No Longer Want Your Trust


Setting up a trust can be complicated. Now investors are discovering it can be even trickier to unwind one.

Trusts are powerful legal creations. Unfortunately, they are as often misunderstood as understood by the very people who have them. Some are asking "how do I set up a trust?" while others are asking "how do I get rid of the trust I already have?"

These conflicting questions are not an indictment of trusts, but they are really the consequences of our current legal and tax environment.

Trusts, of course, are amongst the most powerful tools for moving wealth outside of the reach of the gnashing teeth of the estate tax. However, the estate tax level has not been predictable for much of the last two decades. While the estate tax level was recently twice set to drop to lows not seen in a decade or more, Congress miraculously hiked it back up to far more generous exemption amounts with far less damaging taxation percentages.

In other words, some taxpayers have found that a trust might not be doing the work for which they established it simply because Congress got it right. Following this thought, The Wall Street Journal recently published an article titled "How to Dismantle a Trust."

As the article notes, there is a way to properly blow up your trust. On the other hand, do not be too quick with the dynamite. Why? There are far more important reasons to keep your trust independent of any present or future estate tax exposure.

For example, the probate avoidance enjoyed through a properly funded revocable living trust can save time, money and inconvenience should you become incapacitated and upon your death. Moreover, the inheritance protection available for your heirs can be an important consideration.

If you have yet to set up a trust, there are still many great reasons to establish one for yourself and your heirs. On the other hand, if your current trust is more burden that benefit, then the trust can be shut down.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map