If you have a revocable trust in New Jersey and are wondering, how do you revoke a revocable trust, it’s good to know that yes, you generally can. But there are specific rules, steps, and legal considerations to follow. The team at The Simone Law Firm has put together a clear guide on how do you revoke a revocable trust so you can make informed decisions with less stress.
What Is a Revocable Trust — And Why Revoke It?
A revocable trust (sometimes called a “living trust”) allows the person creating it (the grantor) to retain control of the trust assets during their lifetime. You can usually amend or even terminate (revoke) the trust, depending on the terms of the document.
People revoke or terminate a revocable trust for several reasons:
- Changes in life circumstances (e.g., marriage, divorce, move, change in financial status)
- Dissatisfaction with the trustee (or wanting to change who holds control)
- Simplifying estate planning (maybe your trust no longer serves your goals)
- Tax considerations or shifts in law (especially if benefits or burdens of the trust change)
Who Has the Power to Revoke a Revocable Trust in New Jersey
In New Jersey, the power to revoke or amend a revocable trust belongs to the settlor (the person who created the trust) — during their lifetime.
Here are key points:
- If the trust document expressly says the trust is irrevocable, or there is clear evidence the grantor meant the trust to be irrevocable, then you cannot revoke it.
- If more than one person (for instance spouses or civil union partners) contributed to the trust, different portions may be revocable by different people, depending on the nature of the property (e.g., community property vs. separate property).
Legal Steps to Revoke a Revocable Trust in NJ
Revoking a trust isn’t just about saying “I don’t want this anymore”—you must follow certain formal steps to ensure the revocation is legally effective. Here are the main ones, based on New Jersey law and The Simone Law Firm’s guidance:
- Review the Trust Document Carefully
Understand whether your trust explicitly gives you revocation power and whether it specifies how to do it. Some trusts include their own revocation or amendment procedures. - Prepare a Written Revocation
A formal revocation document is usually required. This document should clearly state your intent to revoke or terminate the trust, and identify which assets (if applicable) are involved. - Notify Trustee and Beneficiaries
Once you’ve decided to revoke, notify the trustee and any beneficiaries. This helps avoid disputes and confusion about your intentions. - Re‑Transfer (“Defund”) Assets
Assets held in the trust must be retitled or transferred back into your own name (or otherwise removed from the trust) so that the trust no longer holds anything. For real estate, this might mean new deeds; for financial accounts, changing account ownership. - Execute the Revocation Properly
Sign the revocation document with required formalities (often in front of a notary). Ensure that all legal requirements are met per the trust document and relevant state laws. - Follow Any Additional Trust Terms
If the trust document includes a method or special procedure for revoking or amending, those must be followed. If not—or if its method is not exclusive—then revocation can also occur via other writing or even a later will/codicil that refers to the trust.
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What Happens Once the Trust Is Revoked
After successful revocation:
- The trustee is usually required by law to deliver the trust property back to the grantor in accordance with the revocation document.
- The trust ceases to operate. Any instructions, fiduciary obligations, or powers held under the trust dissolve.
- Beneficiaries lose any future interest in the trust (unless otherwise specified) because the trust no longer exists.
Potential Pitfalls & Things to Check
Even though revoking a trust is often straightforward when done properly, there are common missteps and risks to be aware of:
- Lack of legal capacity — If the grantor is not mentally competent at the time of revocation, the act may be challenged.
- Undue influence — If someone pressured the grantor into revoking, beneficiaries might contest it.
- Failure to follow the document’s required method — If the trust lays out specific steps for revocation and those aren’t followed exactly, problems can arise.
- Not properly “defunding” the trust — Keeping assets titled in the name of the trust after revocation could lead to confusion or legal exposure.
How The Simone Law Firm Can Help You Revoke a Revocable Trust Properly
If you’re considering revoking a trust in New Jersey, The Simone Law Firm offers the experience and support to guide you through the process. They can help with:
- Reviewing your trust document to see whether revocation is allowed
- Drafting a clear revocation or termination document tailored to your circumstances
- Assisting with the transfer of assets out of the trust (titles, deeds, accounts)
- Ensuring notice to trustee and beneficiaries is handled properly
- Addressing potential disputes and making sure the revocation is legally defensible
Yes—you can revoke a revocable trust in New Jersey, as long as it was created to be revocable and you follow the proper procedures. Reviewing the trust’s terms, preparing a written revocation, notifying all relevant parties, defunding the trust, and executing correctly are all essential steps.
If you’re ready to explore how to revoke your revocable trust, or want help ensuring every item is handled correctly, reach out to The Simone Law Firm. Their guidance can give you peace of mind knowing your estate plan reflects your current wishes.
