Legal Question in Wills and Trusts in New York
Can a trust be forcibly dissolved?
My mother recently passed away and left me as the sole beneficiary to her living trust to be administered by a family friend acting as trustee.
If the trustee (and secondary trustee) were to resign their duties, would the entire trust revert to my ownership?
Are there any other ways of dissolving a trust and having all assets (financial principal and real estate) come into my possession?
2 Answers from Attorneys
Re: Can a trust be forcibly dissolved?
You do not describe the language of the trust, as to the rights of the trustees to make distributions to you - when and under what circumstances. Keep in mind your mother had good reasons for creating the trust and, supposedly, chose the language she used carefully. There are many good reasons people create these trusts with delayed payout of the assets. You cannot arbitrarily terminate the trust, but can only do it in accordance with its terms. If both the primary and secondary trustees were to resign, the law would require someone else to be appointed and it could be a stranger (court appointed). If you could send me the trust language (FAX - 973-377-8167) I can read it and better advise you how to proceed.
Re: Can a trust be forcibly dissolved?
The resignation of all of the trustees will not terminate the trust.
Only the Surrogate can terminate a testamentary trust and then only for good cause and with the consent of all interested parties.
The Will may authorize termination of the trust but you have to read the document to see if those provisions terms exist, and if they do, how the power is exercised.