Residents of Kansas City may create a trust so that once their life ends, their assets are passed on to their loved ones per their wishes. However, the trusts themselves can also reach an end point.
One way a trust can end is if the creator of the trust either specifies a particular end date for the trust or the creator of the trust places a condition on the trust and that condition is fulfilled. In either of these situations, once the end date is reached or the condition is fulfilled, the trust will end. One example of an end date in a trust is if the trust contains language that the beneficiary of the trust will continue to receive trust assets until the beneficiary reaches a certain age. An example of a condition that will cause a trust to end is language stating that the beneficiary will continue to receive trust assets until they graduate from college.
In addition, the trust can end if the assets in the trust simply run out. For example, if the trust beneficiary is paid according to the trust along with all interest and all the money in the trust is gone, the trust will come to an end. If the assets in the trust were tangible, such as a house, the trust may end once its assets are used up, or it may end once the house is demolished.
Once a trust ends, if there are any assets left in it, the trustee along with the trust beneficiaries will make distribution per the trust’s instructions. If the trust does not contain instructions on how to distribute assets after the trust ends, it is up to the trustee and the beneficiaries to find a way to divide the assets in a fair matter.
Trust and probate administration can be tricky, especially if the trust language is unclear or leaves no instructions on how to distribute the remaining assets once the trust ends. In these cases, it can help to seek the advice of an estate planning attorney, so that the trust assets are fairly and appropriately handled.
Source: FindLaw, “How Does a Trust End?,” accessed Aug. 9, 2016