Closure of a Special Needs Trust

When a trust is closed, MSNT follows the requirements and terms of the trust agreement as well as applicable state and federal laws and regulation. Additional information about account closure can be reviewed in the MSNT Guide for Co-trustees and Beneficiaries.

MSNT trusts are closed for the reasons described in the chart below.

Trust Type Reasons for Trust Closure
Revocable Third Party Trusts
  • Revoked at the request of the donor
  • Revoked by a co-trustee so authorized by the donor in the trust agreement
  • Trust account balance falls below the MSNT minimum balance requirement
  • Death of the beneficiary
  • MSNT determines that the trust should be terminated because it is no longer practicable or consents to transfer to a successor trust
Irrevocable First and Third Party Trusts
  • Trust account balance falls below the MSNT minimum balance requirement
  • Death of the beneficiary
  • MSNT determines that the trust should be terminated because it is no longer practicable

Closure Timeframes

For each circumstance, the time frames and requirements will vary. Typically, closing activities require 60-90 days to complete but may take longer. If you have questions regarding closing procedures or status of closing, contact MSNT.

After closing, the co-trustee will receive a quarterly trust account statement reflecting final distributions.