“Helpful and Trustworthy Attorney”
I was really sad that I even had to hire an attorney to deal with parts of my family when my dad died but he really helped me get through the process and was SO knowledgeable on everything that was going on.
How to Terminate a Trust in Texas
When a trust statement is drafted, it is almost impossible to take all possible life scenarios into consideration. If something has slipped through the cracks and you realize your family trust fails to address certain issues, Keith Morris & Stacy Kelly, Attorneys at Law may be able to help you modify or terminate it.
“Helpful and Trustworthy Attorney”
“Ryan and team were very professional and empathetic regarding probating my sister’s estate.”
“Ryan and team were very professional and empathetic regarding probating my sister’s estate.”
They were caring and kind all the way through the process. I highly recommend them to anyone entitled to claim leftover funds from foreclosure or who need to probate an estate for a loved one. Here is a picture of myself and my lovely sister, Karen!
- Shirley H.
“After my Mom passed away and her house was foreclosed on, Ryan of Conscious Dealz helped me get the excess funds from the foreclosure.”
“After my Mom passed away and her house was foreclosed on, Ryan of Conscious Dealz helped me get the excess funds from the foreclosure.”
He told me the amount I would receive at the beginning of the process. He also told me that I would never have to step inside of a court room, which I didn’t want to due to the complex challenges of probate court. Ryan and his team worked very hard for me.
- AJ J.
“Keith and his team were fantastic.”
“Keith and his team were fantastic.”
Keith and his team were fantastic. We had heard horror stories of the probate process but our experience was fast and flawless with Keith. The loss of our loved one was very unexpected and the estate was complicated. Considering the circumstances I can honestly say it couldn’t have gone any better. I have already recommended Keith to others and will continue to.
- Thomas M.
“Thank you, Keith, I truly appreciate you.”
“Thank you, Keith, I truly appreciate you.”
He researched my problem, consulted another expert just for a second opinion, and responded to me with the answers I needed. He is a SUPER PERSON.
- Kathie
“He was responsive and found the right resources for us.”
“He was responsive and found the right resources for us.”
He helped my family navigate a unique probate and trust process right at the end of the year.
- Previous Client
“He is aggressive in court room while remaining respectful and compassionate to other lawyers and his clients.”
“He is aggressive in court room while remaining respectful and compassionate to other lawyers and his clients.”
Keith is one of the finest and technically proficient lawyers I have ever met.
- Jennifer
“Whenever I had a question or concern, all I had to do was call or email Keith.”
“Whenever I had a question or concern, all I had to do was call or email Keith.”
Keith is very professional and was able to settle my family dispute.
- Susan
Terminating a Revocable Trust
Trusts that were created during the settlor’s life can be either “revocable” or “irrevocable.” A revocable trust can be ended by the settlor at any time.
Revocable trusts are not subject to federal gift tax because the donor reserves himself/herself the right to terminate the trust at any time, the gift is still under his/her control and not considered “completed.”
Terminating an Irrevocable Trust
Even irrevocable trusts may be terminated in certain circumstances. According to Section 112.054(a) of the Uniform Trust Code, trustees or beneficiaries have the right to file a suit for modification or termination of their trust.
A modification of the trust may be deemed necessary for the following reasons:
- Removal of corporate trustees
- Appointment or removal of trustees outside of court
- Drafting mistakes in the trust agreement
- Change in federal or state tax law
- Change of situs of governing law
- Split a large trust into separate trusts
- Combine smaller trusts into one
- Modify rights and authority for beneficiaries
- Add special protection for beneficiaries due to unforeseen personal or financial circumstances
- Extend termination date for tax or asset protection purposes
- Remove grantor status or convert into a grantor trust
- Improve poorly administered life insurance trust
- Add special needs provisions
Irrevocable trusts are typically created outside of the testator’s estate and are subject to gift tax laws. This does not apply to life insurance trusts. The amount of tax impact an irrevocable trust has depends on its terms and whether the trust ends at the person’s death or will be carried on by their heirs.
All income generated by an irrevocable trust is subject to income tax. The income will be distributed among the beneficiaries and will be deducted from the trust’s taxable income.
To revoke and/or terminate an irrevocable trust, the settlor and all beneficiaries must express consent. If one party seeks modification of the trust against the interest of another party, the petition will need to be brought before a court to decide.
Under the doctrine of merger, a trust is considered terminated as soon as one party gains possession of the legal and equitable title to the trust property. A trust is also terminated once all money therein has been spent by the trustees.
A testamentary trust can only be terminated if the material purpose no longer exists. If for instance, the trust was set up to pay for the children’s education, it cannot be terminated until the children have received said education.
Get Help Terminating A Trust In Texas
Fiduciary laws regarding trusts in Texas are complex matters that should not be taken lightly. If you need help assessing and evaluating a trust for termination, we recommend contacting an experienced trust attorney. Keith Morris is here to help.
Contact Keith Morris today at (346) 384-8768 in Houston and (817) 532-6797 in Fort Worth to schedule a free consultation to discuss your legal rights in terminating a trust in Texas.
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Have you lost a loved one and need to settle his or her estate? Do you need the estate administered correctly? Are you concerned that someone may be taking advantage of your relative’s death? Are you concerned about ensuring that the wishes of the deceased are honored?
If the answer to any of these questions is yes, our Texas law firm can help. We can assist you with questions related to inheritance law, will contests, guardianships, property rights, will forms, conservatorships, codicils, intestacy, and more. When you need a probate lawyer in Texas, call Keith Morris & Stacy Kelly.
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