Can a Trust be canceled or revoked?

November 12, 2020

It depends. If the Trust is a Master Trust, it can be revoked if at least one Grantor is living, it was revocable when it was established, and the Joinder Agreement does not limit the revocation. If the Trust is an irrevocable Master Trust or a Pooled Medicaid Payback Trust, it cannot be canceled or revoked. All Pooled Medicaid Payback Trusts are irrevocable from the date executed and do not allow for early termination. Regardless of the type of Trust, it is permissible to distribute all of the funds during the Beneficiary’s life and, in that case, the Trust would be closed due to exhaustion of funds. A Trust can also be transferred to another pooled trust, for example, if the Beneficiary moves out of Ohio.