Living Trust
When does a Living Trust end?

When does a Living Trust end?


Jennifer Mcgee


Updated on  

March 17, 2023

5 Mins


Living Trust is an essential document of Estate Planning. If you are planning to create a Trust you must understand its basics like how a trust is created, when a Living Trust end, etc. In this article, we will be primarily understanding how a Living Trust ends. 

Meaning of Living Trust

Living Trusts are documents of Estate Planning, created by a person known as a “Grantor/Initial Trustee” who puts property into a Trust and enjoys the benefits of it during their lifetime. Upon the death of the person, the property is managed by another person appointed by the Grantor called a “Successor Trustee”.  

The people who inherit the Trust property upon the death of the Grantor are the “Beneficiaries”.


The person who created the Living Trust


The person who acts on behalf of the Initial Trustee upon his death.


The person who inherits the property of the Initial Trustee upon his death.

When does a Living Trust end 

Usually, a Revocable Living Trust takes 6-12 months to end after the death of the Grantor. This duration is not fixed and depends upon the terms of the Trust. A Trust with limited assets and beneficiaries will probably take less time to end as compared to a Trust with huge assets. “Declaration of the Trust”(a document that specifies the terms of the Trust) plays an essential role in determining the time taken to end a Trust. 

Termination/End of a Living Trust takes place under the following circumstances: 

  1. Upon fulfillment of the purpose of Trust
  2. Upon conditions specified in the terms of the Trust
  3. Upon mismanagement of Trust

Let us understand these circumstances in detail.

Termination of Living Trust upon the fulfillment of its purpose 

A Living Trust ends when the purpose for which it was created is fulfilled. It also depends upon the type of Trust created and upon the terms of the Trust. 

Revocable Trusts

Revocable Living Trusts are the most common type of Living Trusts which people usually make because of their Flexibility. The grantor is free to alter or amend the provisions of this Trust anytime before death. 

  • A Revocable Living Trust may be terminated anytime by the Grantor before he dies for any reason or once the assets of the Trust are distributed among the beneficiaries.

Irrevocable Trusts

Irrevocable Living Trusts are Trusts whose provisions cannot be changed easily. It is a complicated process to change the provisions of these Trusts as it requires approval from beneficiaries or the court. 

  • Irrevocable Living Trusts cannot be terminated once they are created unless the assets are distributed among the beneficiaries. 

Read this article to know the difference between Revocable and Irrevocable Living Trusts.

Termination of Living Trust based on terms of Trust

Terms of the Trust may also specify the time when the Living Trust will be terminated. The grantor may specify a particular date or event on which the Trust may terminate. For instance, 

the Grantor may specify that the trust will terminate: 

  • Upon reaching a specific age by the beneficiary
  • Upon the marriage of the beneficiary

Termination due to Mismanagement or Poor Financial Conditions

When the trust assets are exhausted, the Trust may come to an end. This can be caused due to the financial mismanagement of assets by the trustee. 

It is not necessary that this mismanagement is caused by the fault of the trustee. In case the estate is invested in the stock market for earning interest and the market crashes suddenly; it is not the trustee’s fault. 

There may be circumstances where the whole of the estate gets destroyed. For example, if a house that is held in a trust catches fire and everything inside it is destroyed, the Trust will come to an end. 

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Frequently Asked Questions

What parties are involved in the living trust?

Three parties are involved in a Living Trust. The grantor(person who created the trust), trustee(person who manages the trust after the grantor), and beneficiary(person who receives benefit from the trust assets).

Does a bank or trust company have to be involved in my living trust?

It is not necessary to do so. You can name any individual as your trustee. A bank or trust company will be involved in your trust only in case you appoint them as the trustee of your trust.

Are Living Trusts a Public record?

No. Living Trusts are not public records. Living Wills do not go through Probate.

Does a Living Trust avoid Probate?

Yes. A Revocable Living Trust avoids probate and an Irrevocable Living Trust avoids Estate taxes.

Can I transfer mortgaged house or real estate to my Living Trust?

Yes. You can transfer your house or real estate to your Trust even if they are mortgaged.
Jennifer Mcgee
Parent to five young children. Estate Planning, Probate, and Family Law Attorney. Volunteer with Victim’s Advocates in the local sheriff's department...
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Jennifer Mcgree
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