After the implementation of the 2013 federal tax law, many Americans are discovering that they no longer need the trust accounts that they had previously set up. As a recent article discussed, sometimes a revocable trust can be terminated. One type of revocable trust is the bypass trust. The trustee of a bypass trust can distribute the assets in kind to the beneficiary. Then, a bypass trust may be terminated if it is relatively small (assets totaling $100,000 or less), if it is uneconomical to maintain, or if it does not serve a “material purpose” of the creator. If you believe that your trust can be terminated under one of the above categories and your trustee does not agree, you can petition a judge to terminate the trust. Before you terminate a trust, however, be sure that you do not need the trust in order to avoid state inheritance and estate taxes. Although California no longer has an inheritance tax, currently, 18 states and the District of Columbia have such taxes. Your trust may also be important to protect your assets from creditors or future spouses. If you would like help creating or terminating a revocable trust, or for any other estate planning questions, please contact us at 818.956.9200.