There will be times when a trustee will be managing a trust and they’ll come across a trust asset that simply isn’t worth anything. It could be an interest in a partnership that has gone defunct and is no longer in business. It could be a lot of land out in the middle of the desert that they can’t seem to sell no matter how they try or how long they have it on the market.
Whatever the case may be, there’s time when an asset of the trust is worthless. And during those times, the trustee has the power and the right to abandon the asset. That means they can just walk away from it.
Walking Away is Beneficial to the Beneficiaries
This is good for the trust administration and it’s good for the trust beneficiaries, too. Because most trust beneficiaries don’t want to be given an asset that’s not worth anything. It’s just not worth the trouble of transferring it. And the beneficiary will have to figure out what to do with it.
