Unless the continuation of a trust is necessary to carry out a material purpose of the trust (such as tax benefits), the trust may be terminated by agreement of all the beneficiaries if none of them is mentally incompetent or underage (e.g., under 21 in some states). However, termination generally cannot take place when it is contrary to the clearly expressed intention of the trustor. In the absence of a provision in a trust instrument giving the trustee power to terminate the trust, a trustee generally has no control over the continuance of the trust.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Michigan Agreement Among Beneficiaries to Terminate Trust is a legal document that outlines the process and conditions under which a trust can be terminated. This agreement is relevant for individuals or groups of beneficiaries who wish to dissolve a trust and distribute its assets among themselves. In Michigan, there are two main types of Agreement Among Beneficiaries to Terminate Trust: 1. Revocable Trust Termination Agreement: This type of agreement is used when the trust was initially created as revocable, meaning the granter had the ability to modify or revoke the trust during their lifetime. The beneficiaries may come together and agree to terminate the trust for various reasons such as changes in circumstances, family dynamics, or financial considerations. This agreement requires unanimous consent from all beneficiaries and may involve the approval of a court depending on the terms of the trust. 2. Irrevocable Trust Termination Agreement: An irrevocable trust is one in which the granter relinquishes control over the assets and cannot modify or terminate the trust without the consent of the beneficiaries or court intervention. However, in Michigan, beneficiaries may reach an agreement to terminate an irrevocable trust under certain circumstances. This agreement usually requires the unanimous consent of all beneficiaries and often necessitates court approval, especially if the trust was created for charitable purposes. When drafting a Michigan Agreement Among Beneficiaries to Terminate Trust, it is essential to include specific details such as: 1. Identification of the trust: Clearly state the name and date of the trust, as well as the names of the granter and current trustee(s). 2. Beneficiary information: List the names and contact information of all beneficiaries involved in the termination agreement. 3. Purpose of termination: Provide a detailed explanation of why the beneficiaries wish to terminate the trust, whether it is due to changed circumstances, fulfillment of objectives, or other pertinent reasons. 4. Distribution of assets: Describe how the trust assets will be distributed among the beneficiaries following the trust termination. This may involve dividing assets equally or according to a specified ratio or formula. 5. Court approval process: If required by Michigan law or the terms of the trust, outline the steps involved in obtaining court approval, such as filing a petition, holding a hearing, or obtaining consents from interested parties. 6. Release and discharge: Include a clause wherein the beneficiaries agree to release and discharge the trustee(s) from any liability or claims related to the trust termination once the distribution is complete. 7. Governing law: Specify that the agreement will be governed by Michigan state laws and any disputes will be resolved in the appropriate Michigan courts. Remember, legal agreements such as the Michigan Agreement Among Beneficiaries to Terminate Trust should be prepared by a qualified attorney who can tailor the document to the specific needs and circumstances of the trust and its beneficiaries.
