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.
North Carolina Agreement Among Beneficiaries to Terminate Trust is a legal document used in North Carolina to dissolve or terminate a trust agreement. The agreement is entered into by all the beneficiaries of the trust who collectively have the power to terminate the trust. In North Carolina, there are several types of Agreement Among Beneficiaries to Terminate Trust that can be utilized based on the specific circumstances of the trust: 1. Revocable Living Trust Termination Agreement: This type of agreement is commonly used when the settler (the person who created the trust) is still alive. The beneficiaries, with the settler's consent, agree to terminate the trust and distribute the trust assets accordingly. 2. Irrevocable Trust Termination Agreement: In this scenario, the beneficiaries seek to terminate an irrevocable trust. Irrevocable trusts are typically designed to be unchangeable, but in some cases, all beneficiaries may unanimously agree to terminate the trust due to changed circumstances or other compelling reasons. 3. Agreement Among Beneficiaries to Terminate Testamentary Trust: Testamentary trusts are created through a person's will and only become effective upon the death of the individual. In this type of agreement, the beneficiaries agree to terminate the testamentary trust and distribute the assets as per the terms of the agreement. 4. Special Needs Trust Termination Agreement: A special needs trust is established to provide for the financial needs of a person with disabilities while preserving their eligibility for government benefits. In some cases, the beneficiaries may decide to terminate the trust if it is no longer serving its intended purpose or if the beneficiary's circumstances change significantly. Regardless of the type of trust being terminated, a North Carolina Agreement Among Beneficiaries to Terminate Trust must include essential elements such as the identification of the trust, the names and signatures of all beneficiaries, the distribution plan for the trust assets, and the effective date of the termination. It's important to consult with a qualified attorney for legal advice and assistance in drafting a North Carolina Agreement Among Beneficiaries to Terminate Trust, as the agreement must comply with state laws and address all relevant considerations to ensure a legally sound termination process.
