If you set up a BMC-85 trust to get your freight broker authority, you deposited $75,000 with a trustee, who holds it to pay shippers and motor carriers you fail to pay. When the trust is cancelled, the trustee's protection for those carriers and shippers continues until all claims are settled or the funds are exhausted, and your trust agreement governs how any remaining balance is returned to you.
If you plan to keep brokering, you can replace your trust with a BMC-84 freight broker bond before you cancel it. This guide covers when brokers cancel a trust, how cancellation works under FMCSA's rules, and what to do before, during, and after. If you're still comparing options, see our guide to BMC-85 vs. BMC-84.
When You Might Cancel a BMC-85 Trust
You want to free up the $75,000. A trust requires the full $75,000 to be deposited with the trustee. A BMC-84 bond meets the same $75,000 requirement, but instead of depositing the full amount, you pay an annual premium based on your credit and financials. Your annual premium can be as low as $938 a year.
Your trust provider no longer qualifies. FMCSA's Broker and Freight Forwarder Financial Responsibility Rule reached its compliance date on January 16, 2026. BMC-85 trustees must now be financial institutions such as insured banks, commercial banks and trust companies, thrift institutions including credit unions, or insurance companies; loan and finance companies are no longer eligible. Trust assets are limited to cash, irrevocable letters of credit issued by a federally insured depository institution, and Treasury bonds, and must be convertible to cash within 7 calendar days. We covered the rule in FMCSA Approves Stricter Freight Broker Rules, where we recommended that brokers who put $75,000 in cash into a trust consider replacing it with a BMC-84 bond and getting their $75,000 back.
You're closing your brokerage. Your broker registration remains in effect only as long as a bond or trust remains in effect.
Do I Need $75,000 in Cash for a BMC-84 Bond?
No. Both options must cover $75,000, but they work differently. With a BMC-85 trust, the trustee holds $75,000 of your assets. With a BMC-84, $75,000 is the bond amount, and you pay an annual premium for the bond. A freight broker bond is a financial safety net for your motor carriers, not insurance for your business.
What If Your Trust Provider Stops Offering BMC-85s or Is Found Ineligible?
Brokers are dealing with this now. In one r/FreightBrokers discussion, a broker described needing to replace a $75,000 trust after their provider stopped servicing BMC-85 trust accounts.
There are two ways this can happen, and the rules differ slightly:
If your trustee cancels your trust, it must give FMCSA 30 days' written notice before the cancellation takes effect.
If FMCSA determines your trustee is ineligible, you have 30 days to obtain a replacement filing from a qualified provider. If you don't, your operating authority registration will be suspended.
In either case, the first step is to file replacement security. Once a new provider's filing is submitted and accepted, it replaces your existing BMC-85. You can do that with a BMC-84 bond or a new BMC-85 from an eligible trustee.
To check whether your current trustee qualifies, FMCSA advises brokers to contact their trust provider to verify that it's compliant and authorized to file and maintain trust agreements. When FMCSA verifies eligibility, it may request documents such as trust agreements, proof of deposits or segregated funds, FDIC or NCUA certificates, state licenses or charters, and evidence of regulatory oversight. For background on why FMCSA tightened these rules, see FMCSA Proposes Stiffer Freight Broker Rules.
How to Cancel Your BMC-85 Trust and Get Your $75,000 Back
Follow these steps whether you're switching to a BMC-84 bond, moving to a new trustee, or closing your brokerage
Step 1: Decide Whether You're Replacing the Trust or Closing
If you're staying in business, file the replacement first. A BMC-84 bond or a new BMC-85 trust can replace your existing trust once it's accepted by FMCSA. Under 49 CFR § 387.307, the retiring trustee's liability is treated as ending on the replacement's effective date. That termination doesn't affect the trustee's liability for damages arising from transportation you arranged before that date.
If you're switching to a bond, get your BMC-84 quote before you contact your trustee about cancelling.
If you're closing your brokerage, you'll cancel the trust without a replacement. Because your registration stays in effect only while a bond or trust is in effect, your authority ends when the cancellation does. If you may return to brokering later, see how to get a freight broker license.
Step 2: File the Notice of Cancellation
A BMC-85 trust may be cancelled only on 30 days' written notice to FMCSA, on Form BMC-85, by either the broker or the trustee. FMCSA's compliance guide states that only a trustee can file a BMC-85, and all forms are submitted electronically through FMCSA's registration system. Contact your trustee to start the process.
The 30-day period begins when FMCSA actually receives the notice, not when you send your request. The notice of cancellation on the official BMC-85 form must state an effective date at least 30 days after FMCSA receives it. Ask your trustee to confirm the date FMCSA received the filing, and keep that confirmation.
Step 3: Understand How Claims Are Handled
Under the BMC-85 agreement, the trustee pays, up to $75,000, any sums it determines in good faith that you failed to pay and would be legally liable for, directly to shippers or motor carriers, for transportation arranged while the agreement was in effect. Cancellation doesn't end that obligation: the trustee remains liable for damages from arrangements you made before the cancellation took effect, and the agreement's protection continues until all claims are settled or the funds are exhausted.
The process depends on why the trust is being cancelled.
Voluntary cancellation (you're switching or closing). The regulation doesn't set a deadline for returning your remaining balance. Ask your trustee in writing how and when they release funds after cancellation under your trust agreement.
Cancellation due to financial failure. If your trustee receives claims that would reduce the trust below $75,000, notifies you and gives you 7 business days to respond, and then determines the claims are legitimate and expects to pay them, it must notify FMCSA and initiate cancellation. FMCSA publishes the cancellation in the FMCSA Register, and the trustee must accept claims for 60 calendar days after that notice.
Step 4: Settle Your Payables Before You File
Claims the trustee pays come out of the trust funds. Before you request cancellation, pull your open loads, pay your carriers, and resolve any disputes directly.
Respond promptly to any claim notice from your trustee. The regulation describes cases where a broker doesn't respond within 7 business days and the trustee determines the claim is valid and pays it.
Step 5: Confirm the Release Details With Your Trustee
Confirm which account any remaining funds will go to, especially if your business banking has changed since you set up the trust.
Check whether you have any unpaid trustee fees. Under the BMC-85 agreement, all sums due the trustee for administering the trust are billed directly to you and can't be paid from the trust funds.
Request your account records if you need them. The trustee must keep a record of all financial transactions concerning the fund and make it available to you upon request and reasonable notice. Keep copies of your cancellation filing, FMCSA's receipt date, and your carrier payment records.
Switching to a BMC-84 Bond
A BMC-84 bond lets you meet the $75,000 requirement without depositing $75,000, for an annual premium based on your credit and financials. JW Surety Bonds has an in-house claims department that defends clients from invalid claims.
To keep your authority active, apply for your BMC-84 freight broker bond and have it filed and accepted before your trust is cancelled.
Frequently Asked Questions
How long does it take to get my BMC-85 money back?
The cancellation takes effect at least 30 days after FMCSA receives the notice. The trustee's protection for carriers and shippers continues until all claims are settled or the funds are exhausted, and your trust agreement governs when the remaining balance is released. Ask your trustee for their timeline in writing.
Do I need $75,000 in cash to switch to a BMC-84 bond?
No. $75,000 is the bond amount. You pay an annual premium based on your credit and financials.
Can I cancel my BMC-85 trust and keep operating?
Yes, if a replacement BMC-84 bond or BMC-85 trust is filed and accepted first. The old trustee remains liable for damages from transportation you arranged before the replacement took effect.
Will I get the full $75,000 back?
Any claims the trustee pays come out of the trust funds, up to $75,000. Trustee fees are billed to you directly and can't be paid from the trust funds.
What happens if my trust provider no longer qualifies under the 2026 rules?
If FMCSA determines your provider is ineligible, you have 30 days to obtain a replacement filing from a qualified provider, or your operating authority registration will be suspended.
Who files the BMC-85 cancellation?
The regulation allows either the broker or the trustee to cancel the trust. FMCSA's compliance guide states that only a trustee can file a BMC-85, so contact your trustee to start the process.
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