Related Definitions
What is Termination of a Trust?
The process of ending a trust, either because its purpose has been fulfilled, all trust assets have been distributed, or other conditions for termination, as specified in the trust document, have been met.
The legal process of dissolving a trust, which may occur due to the fulfillment of its purpose, expiration of its terms, or a decision by the trustee or beneficiaries. When a trust is terminated, the trustee is responsible for distributing the remaining assets according to the terms of the trust or the intentions of the grantor. Trust termination can also result from court action if it is determined that the trust no longer serves its intended purpose.
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