Dissolving a trust

What is the name of your state (only U.S. law)? The trust and my sister are in California, I reside in Colorado. My sister and I are parties to a trust set up by my late father. The trust contains stock (which have suffered huge losses) a few thousand dollars and a property in California which is titled in both of our names. My sister lives in California and I live in Colorado. We would like to dissolve the trust leaving the property in both of our names and dividing the remaining assets and liabilities equally. Can we do this with a simple letter declaring our intent, have it notarized and then proceed to divide the assets and liabilities? Would it be better to do this before the end of the year for tax purposes, or would we be better off taking this action in 2009?

Thanks for your help What is the name of your state (only U.S. law)? California and ColoradoWhat is the name of your state (only U.S. law)?

No one can answer your question without having read the trust.

You need to hire a California trust attorney to guide you in this matter.

Your situation should be relatively simple. Divide the assets in the brokerage account and retitle the property.

curb1 said:

Your situation should be relatively simple. Divide the assets in the brokerage account and retitle the property.

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So ... you read the trust?

Of course.

If the trust allows you to distribute the assets, then you can do so. If the trust has no assets, it's pretty moribund, no need to stick a knife in it.

Unless the trust requires some sort of declartion, you just do it.

Depends on the language in the trust. I have created trusts which are extremely restrictive as to when and how much can be paid out during my kids lifetime. I've also created an extremely flexible one.

Read the trust.

Well, I guess we're all in violent agreement then.