Collas Crill Explains... Termination Of A Trust

This is part of a series of guides in which we examine areas of law that frequently arise in practice. Further guides will be released weekly;  click here to subscribe to receive Collas Crill news and insights by email.

How does a trust come to an end?

There are a number of ways in which a trust might terminate:

• By operation of law for lack of assets – the trustee (or settlor if he/she holds a reserved power under the trust instrument) may make an appointment of the whole of the trust fund to one or more of the beneficiaries, resulting in no remaining assets in the trust (at which point the trust fails).
• A settlor's power of revocation is exercised, revoking the trust.