Immediate liquidation of revocable trust?

[curb1]

What is the name of your state (only U.S. law)? Oregon Does anyone have any reason(s) why an immediate liquidation of trust assets would not be advisable for a very "clean" trust? There a six real estate properties plus cash assets. Change titles and be done. There are no debts on anything. The trust would have zero income with the immediate (one week) liquidation. This seems like the best "hassle-free" procedure. There are zero conflicts with the three beneficiaries.

 

[LdiJ]

What is the name of your state (only U.S. law)? Oregon Does anyone have any reason(s) why an immediate liquidation of trust assets would not be advisable for a very "clean" trust? There a six real estate properties plus cash assets. Change titles and be done. There are no debts on anything. The trust would have zero income with the immediate (one week) liquidation. This seems like the best "hassle-free" procedure. There are zero conflicts with the three beneficiaries.

If the trust allows for a 100% distribution to the parties all at once, then the parties are free to do so. If distributions are restricted in some way, then the parties are not free to do so.

 

[FlyingRon]

Who is the grantor? If this was an revocable trust of someone who is now deceased it's not revocable anymore (not that this matters) there may be estate taxes in play even if there is no probate.

 

[anteater]

And what about the grantor's final expenses and any other debt? Can those be covered with other assets?

 

[curb1]

The grantor is alive and 96 years old. I am the trustee. There are no debts and plenty of cash to cover any remaining expenses. After the distribution the beneficiaries would pay the expenses if there were any.

 

[LdiJ]

The grantor is alive and 96 years old. I am the trustee. There are no debts and plenty of cash to cover any remaining expenses. After the distribution the beneficiaries would pay the expenses if there were any.

You cannot liquidate a revocable trust while the grantor is still living. The grantor has the right to revoke the trust at any time. There could also be unintended tax consequences as well.

 

[curb1]

I realize that the trust cannot be distributed/liquidated while grantor is alive. This is planning for the inevitable and being ready when the time comes. It is the grantor's wish. Are there any other concerns that might prevent this plan happening in this way?

 

[LdiJ]

I realize that the trust cannot be distributed/liquidated while grantor is alive. This is planning for the inevitable and being ready when the time comes. It is the grantor's wish. Are there any other concerns that might prevent this plan happening in this way?

I cannot think of any other than conditions that might be imposed by the trust itself...review the trust documents carefully.

 

[curb1]

Thank you. If anyone thinks of something additional, let me know. I couldn't think of any problems with the immediate disbursement and it would save a lot of paperwork.