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.
Vermont Agreement Among Beneficiaries to Terminate Trust is a legal document commonly used in the state of Vermont to dissolve or terminate a trust. This agreement is entered into by all the beneficiaries of the trust and outlines the terms and conditions for terminating the trust and distributing its assets. In Vermont, there are two types of Agreement Among Beneficiaries to Terminate Trust that are often utilized: 1. Revocable Trust Termination Agreement: This type of agreement is used when the trust is revocable, meaning it can be changed or revoked by the granter during their lifetime. When all beneficiaries agree to terminate the trust, they execute this agreement to signify their consent and specify the manner in which the trust assets will be distributed. 2. Irrevocable Trust Termination Agreement: Irrevocable trusts, as the name suggests, cannot be easily modified or revoked once they are established. In cases where all beneficiaries wish to terminate an irrevocable trust, they must use this specific type of agreement. It sets out the terms and conditions agreed upon by the beneficiaries regarding the distribution of trust assets, overriding the usual restrictions imposed by an irrevocable trust. Regardless of the type of trust being terminated, a typical Vermont Agreement Among Beneficiaries to Terminate Trust should contain the following key elements: 1. Parties involved: The agreement should clearly identify all the beneficiaries of the trust who are entering into the termination agreement. 2. Trust details: It should include the name of the trust, the date it was established, and any other relevant identification details. 3. Termination provisions: This section outlines the terms and conditions for terminating the trust, such as the consent of all beneficiaries being required and the unanimous agreement to distribute the trust assets. 4. Asset distribution: The agreement should provide a detailed plan for the distribution of trust assets, specifying how they will be divided among the beneficiaries or other designated recipients. 5. Release and discharge: To prevent any future claims or disputes regarding the trust, beneficiaries may include a release and discharge provision, stating that all parties involved release each other from any further obligations or liabilities relating to the trust. 6. Signatures: Lastly, the agreement must be signed and dated by all beneficiaries participating in the termination process. It is important to note that while these guidelines provide a general overview, it is advisable to seek legal counsel or consult an attorney experienced in trust law to ensure compliance with Vermont state laws and tailored to the specific circumstances of your trust.Vermont Agreement Among Beneficiaries to Terminate Trust is a legal document commonly used in the state of Vermont to dissolve or terminate a trust. This agreement is entered into by all the beneficiaries of the trust and outlines the terms and conditions for terminating the trust and distributing its assets. In Vermont, there are two types of Agreement Among Beneficiaries to Terminate Trust that are often utilized: 1. Revocable Trust Termination Agreement: This type of agreement is used when the trust is revocable, meaning it can be changed or revoked by the granter during their lifetime. When all beneficiaries agree to terminate the trust, they execute this agreement to signify their consent and specify the manner in which the trust assets will be distributed. 2. Irrevocable Trust Termination Agreement: Irrevocable trusts, as the name suggests, cannot be easily modified or revoked once they are established. In cases where all beneficiaries wish to terminate an irrevocable trust, they must use this specific type of agreement. It sets out the terms and conditions agreed upon by the beneficiaries regarding the distribution of trust assets, overriding the usual restrictions imposed by an irrevocable trust. Regardless of the type of trust being terminated, a typical Vermont Agreement Among Beneficiaries to Terminate Trust should contain the following key elements: 1. Parties involved: The agreement should clearly identify all the beneficiaries of the trust who are entering into the termination agreement. 2. Trust details: It should include the name of the trust, the date it was established, and any other relevant identification details. 3. Termination provisions: This section outlines the terms and conditions for terminating the trust, such as the consent of all beneficiaries being required and the unanimous agreement to distribute the trust assets. 4. Asset distribution: The agreement should provide a detailed plan for the distribution of trust assets, specifying how they will be divided among the beneficiaries or other designated recipients. 5. Release and discharge: To prevent any future claims or disputes regarding the trust, beneficiaries may include a release and discharge provision, stating that all parties involved release each other from any further obligations or liabilities relating to the trust. 6. Signatures: Lastly, the agreement must be signed and dated by all beneficiaries participating in the termination process. It is important to note that while these guidelines provide a general overview, it is advisable to seek legal counsel or consult an attorney experienced in trust law to ensure compliance with Vermont state laws and tailored to the specific circumstances of your trust.
