Terminating a Special Needs Trust

When a trust is terminated, MSNT follows the terms and conditions of the trust agreement as well as applicable federal and state laws and regulations. MSNT trusts are terminated for the reasons described in the chart below.

Trust Type Reasons for Trust Termination
Irrevocable First and Third Party Trusts
  • Trust account balance falls below the $1,000 MSNT minimum balance requirement
  • Death of the Life Beneficiary
  • MSNT determines that the trust should be terminated because it is no longer practicable
  • Trust cannot be terminated by request
Revocable Third Party Trusts
  • Revoked at the written request of the Donor
  • Revoked at the written request of the Co-Trustee as authorized by the Donor in the trust agreement
  • Trust account balance falls below the $1,000 MSNT minimum balance requirement
  • Death of the Life Beneficiary
  • MSNT determines that the trust should be terminated because it is no longer practicable or consents to transfer to a successor trust
The termination process requires 30-45 days to complete and may take longer in some instances. The Co-Trustee will receive a final trust account statement with all closing transactions. The most common reasons for terminating a trust are low balance and the death of the Life Beneficiary.