When you create a revocable trust, it’s usually because you want some level of control and flexibility over the operation of that trust. As a result, you may be able to dissolve the trust at some point in time. If you no longer need or want the trust, you can choose to revoke it or change the stipulations inside so long as it’s a revocable trust.
Breaking a trust refers to the process of dissolving a trust that has been established for estate planning purposes. This can also refer to one party distributing its assets and dissolving the trust, either to the trust beneficiaries or back to the original donor. This can only happen at the discretion of the creator of the trust. A trust fund is one way for managing assets held on behalf of someone else or yourself. When you create a trust and find those assets into the trust, you also set terms for how the trust assets will be distributed.
Breaking or dissolving a trust is only possible with a revocable trust, which by its very nature can be changed or revoked over any period of time. An irrevocable trust, however, must be established and maintained over the course of the creator’s lifetime. The main benefit of an irrevocable trust is that because the assets truly do not belong to the person who has created it, it may be protected from creditors more than a revocable trust.
There are many different kinds of trusts you can use for estate planning in New Hampshire. If you’re interested in using these or other estate planning strategies to accomplish your goals, set aside a time to meet with a qualified attorney.