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Do you know how a trust ends?

As you go through the estate planning process, you may soon realize that creating a trust is the best way to manage property. While there are many benefits of this estate planning tool, you don't want to go down this path until you are sure that it suits your every need. Furthermore, you need to know how to create a trust, and just as importantly, when it will come to an end.

There are many ways for a trust to end. Most commonly, this happens when all the property in the trust is gone. For example, if the trust was made up of cash and stocks, the trust will end once it is paid out to a beneficiary.

A trust can also end if the grantor specifies a particular condition. For example, some people specify that a trust ends when a child turns 18. At that point, he or she receives all the assets in the trust.

If there is still property in the trust, even after it ends, the trustee will communicate with the beneficiary as to how the remaining property will be distributed.

There are many benefits of creating a trust; however, this is not the right choice for everybody. When it comes time for estate planning, this is a strategy to consider.

If you want to create a trust, you should first have an idea of what will happen down the line. This includes how the trust will end. The right knowledge will allow you to make the right decisions regarding what is best for your assets and family.

Source: FindLaw, "How Does a Trust End?," accessed Oct. 12, 2015

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