Q: If everything is out of a Irrevocable trust, does it have to be closed out or does it stay open forever.
A:
If I understand your question, you're asking what happens to an irrevocable trust if it no longer has any assets? The trust normally could be closed, unless the trust might obtain property or money in the future (for example, if the trust is the beneficiary of a life insurance policy, or of another trust, or of someone's will). If there may still be assets in the future that would be administered by the trust, then it may not be a good idea to close it.
On the other hand, most trust agreements have language that says if the balance of assets in the trust is below a certain dollar amount, the trust can be terminated because it is uneconomical (i.e. wasteful, not worth it) to continue to administer the trust.
The language of the trust should be reviewed, along with all of the other relevant circumstances. Your best course of action would be to get a consult with an estate planning attorney so you can learn your options, and so the trust can be dealt with the right way.
Kenneth V Zichi agrees with this answer
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