Trump and his adult children agree to dissolve the Trump Foundation charity amid a lawsuit alleging "persistent illegal conduct"

REUTERS/Andy Clark

• President Donald Trump and his children Ivanka, Eric, and Donald Trump Jr. have agreed to dissolve their charitable organization the Trump Foundation.
• The foundation is currently the subject of a lawsuit from the New York Attorney General's office, which accuses the Trump family of using the foundation to illegally coordinate with the 2016 presidential campaign and engage in self-dealing transactions.
• The suit, which incoming-Attorney General Letitia James will continue to pursue, is also seeking $2.8 million in damages and a temporary ban on Trump family members serving on the boards of charitable organizations.

President Donald Trump and his children Ivanka, Eric, and Donald Trump Jr. have agreed to dissolve their charitable organization - the Trump Foundation - amid a lawsuit from the New York Attorney General's office alleging "persistently illegal conduct" over the course of a decade on the part of the foundation.

New York Attorney General Barbara Underwood said Tuesday that the suit, first filed in June, had uncovered "a shocking pattern of illegality involving the Trump Foundation - including unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more."

Underwood's lawsuit, which incoming-Attorney General Letitia James will continue to pursue, is seeking $2.8 million in damages and a temporary ban on Trump family members serving on the boards of charitable organizations, in addition to the dissolving of the Trump Foundation.

Read more: New York state could soon launch wide-ranging investigations of Trump's finances and business deals, which experts say verges into legally uncharted territory

The terms of the dissolution stipulate that Trump and his children will dissolve the foundation "under judicial supervision" and will give its remaining assets to a number of court-approved charities.

The New York Attorney General's Office is also collaborating with Gov. Andrew Cuomo's Department of Taxation and Finance to probe whether there is enough evidence to bring criminal charges against the foundation, serving former Trump Organization counsel and Trump lawyer Michael Cohen with a subpoena in August.