How to terminate a trust when a co-trustee decline to participate.

With a trust that still has that much in assets, you will need to petition the court to terminate it, or reform it. All of the beneficiaries will have to agree to a reformation, and then you will have to demonstrate to the court why you believe this is necessary. A good probate/trust attorney would work wonders for you.

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

As Mr. Lively indicated, you will need to petition the probate court to terminate the trust. Is the trust company currently acting as a co-trustee? If so, they probably can't resign "on a whim"; they need to make sure the trust is going to be administered properly.

You might want to see if a private professional fiduciary would be willing to take over the administration of this trust - there are a lot of potential problems (given the charitable gifts) if you were to make a mistake. A professional's involvement would provide some assurance that you've done things right.

You also ask about the tax implications, but there isn't enough information to provide an answer to that question.

If you'd like assistance, please let me know.

Californnia has a few methods by which a trust can be terminated. Assuming this is an irrevocable trust, it may be capable of being terminated if all beneficiaries consent. Termination is a tricky business and definitely counsel should be consulted regarding termination, how to do it, and whether it is feasible.