Debt forgiveness in trust

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Debt forgiveness in trust

Hi, my parents wish to forgive me some money
debt I owe them. Its in their trust that I owe
them. Is there a generic form I can acquire to
have them sign and have notarized, rather than
going back to the lawyer that set up the trust
hes kind of expensive. Thanks

Asked on October 24, 2018 under Estate Planning, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

I am not aware of any generic form that is appropriate, but you or your parents can draw an agreement up and both sign it and it will be enforceble. It needs to simply state clearly what is foregiven and why--i.e. the amount of money, and it should state that they are doing so "for good and valuable consideration"--or in exchange for something of value--"receipt of which is hereby acknowledged," and should probably also say "as well as in exchange for a mutual release of any and all claims any party to the contract may have against each other"--not that you or your parents necessarily have any claims against each other, but waiving or giving up potential or possible claims is itself consideration or something of value. For a contract to be enforceable, there must be consideration on both sides--that that, both you and your parents have to get something out of it. That's why you want the agreement to state that they are receiving consideration.
Again, there is no need for a lawyer: just write a clear agreement which recites what is being given and the consideration, and have everyone sign. There is no need to notarize: a notary does NOT, contrary to common belief, make an agreement more binding or official or enforceable or legal. All the notary does is verify that he knows you or checked your IDs and that the people signing all the people they claim to be.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption