How to Cancel an Irrevocable Trust

The concept of committing to something forever can be especially daunting when you change your mind after the fact. For all practical purposes, when you place your assets into an irrevocable trust, you give up both control and possession of them for good. However, as more individuals turn to trusts for estate-planning purposes, some states have added legislation providing ways to undo them, even if you initially intended the trust to last until your death and possibly longer.

Call a meeting of all the beneficiaries named in your trust, as well as the person you named as trustee. Explain that you’ve had a change of heart or a significant change of circumstances that requires you to revoke the trust. Most states allow you to do so if all beneficiaries agree in writing.

Write a paragraph stating in clear language that you are revoking the trust, that you have spoken personally with each beneficiary and that each has consented to the action. Make signature lines for each beneficiary on the left side of the page and a signature line directly opposite it for a notary public to witness the beneficiary’s signature and notarize it. If you’ve named too many beneficiaries and all their signatures will not fit on one page, do a separate page for each of them. Repeat your paragraph and signature lines on all pages and make one for each beneficiary. Do the same for your trustee.

File the consent or consents with the court that recorded your irrevocable trust when you created it. Check with the clerk when you do this to find out if your state is one that requires the court’s approval in addition to the consent of your beneficiaries. In some states you might have to file a motion and request a hearing with a judge expressly granting you permission. The judge will then issue an order allowing you to revoke your trust if everyone agrees and if he thinks it's in the trust's best interest.