The revocation of a trust refers to the process by which the creator of a trust (often called the grantor or settlor) cancels or nullifies the trust, thereby terminating its legal existence and the obligations it created.
When a trust is revoked, the assets held in the trust are returned to the grantor, and the trust’s provisions cease to be effective. This action is typically documented through a written declaration of revocation, which may need to be signed and notarized, depending on state laws.
There are various reasons why a grantor might choose to revoke a trust. For example, the grantor may wish to change beneficiaries, alter the terms of the trust, or transfer the assets back into their estate for personal reasons.
In Texas, the revocation of a trust must comply with the Texas Trust Code, which provides guidelines on how trusts can be amended or revoked. If a trust is irrevocable, the grantor usually cannot revoke it, except under specific circumstances outlined in the trust document or state law.
An example of revocation would be if a person established a living trust to manage their assets while they are alive, but later decides to sell their home and reallocate funds, leading them to revoke the original trust and create a new one that better meets their current needs and intentions.
« Back to Glossary Index