As many Arizona residents start to think about estate planning, they start considering trusts as a way to distribute their property upon their death. Trusts can offer your family security and stability during an otherwise difficult time in their lives. Trusts can help lower the amount of estate taxes owed and help your family avoid probate.
Before you create a trust, you should understand that it will eventually come to an end. For many people, a trust ends when the property within it is exhausted. For example, upon your death, the trust may end as the assets in your trust go to your beneficiaries.
In some cases, the property within the trust may be destroyed before distribution. For example, if your house was in your trust, and it burns down, the trust will come to an end. You can also set an end date for the trust. For example, you may create the trust to set aside some money for your child. If you set a condition that once your child turns 18-years-old he will get the cash within the trust, the trust will end on his 18th birthday.
Once the trust has ended, if there is still property within the trust, the trustee and beneficiaries may work together to distribute the remaining assets. If there are no instructions, they will have to decide what is fair. An estate planning attorney can be helpful during this process. With emotions running high, many people find it difficult to negotiate with their loved ones over property. An attorney can make the process go much more smoothly and help you avoid conflict with your loved ones.
Source: FindLaw, “How Does a Trust End?,” accessed on Dec. 10, 2017