New York's attorney general and Trump Foundation lawyers filed a joint stipulation in a court laying out a process for shutting down the charity and distributing its remaining assets to other not-for-profit groups.
"This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trump's business and political interests", she said.
In another victory for Underwood, she gets to decide where the remaining money in the foundation goes.
Attorney General Barbara Underwood's lawsuit alleging Trump and his family illegally operated the foundation as an extension of his businesses and his presidential campaign will continue.
The agreement was reached after a NY judge last month rejected arguments from the foundation's lawyers that the lawsuit was politically motivated and should be thrown out. Given that The Washington Post's David Fahrenthold won a Pulitzer for exposing the rampant corruption known as the Trump Foundation, it was likely a futile effort to expose the organization to more scrutiny.
The Trump Foundation-the president's philanthropic organization, which he allegedly treated more like a personal pocketbook than a charity-will dissolve pursuant an agreement signed by the Foundation's attorney.More news: Michael Flynn associate charged with illegal lobbying for Turkey
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Mrs Underwood is continuing to seek more than $2.8 million (£2.2m) in restitution and has asked a judge to ban the Trumps temporarily from serving on the boards of other NY nonprofit organisations. Donald Trump Jr. happened to be 11 at the time, and $7 was coincidentally the cost of a new scouting membership, per the Post.
"Unfortunately, the NYAG sought to prevent dissolution for almost two years, thereby depriving those most in need of nearly $1.7m".
President-elect Trump vowed to shut the charitable foundation down in December 2016, to avoid "even the appearance" of any conflict of interest. Trump had boycotted a Republican presidential debate and held what he described as a fundraiser for veterans instead.
The Morning Call today published a story with some sordid details on the Trump Foundation's non-charitable spending and reports the McMahons donated $5 million to the foundation.
Underwood referred the office's findings to the IRS and the Federal Election Commission.
The foundation has given to a range of charities, including the much-maligned and now-defunct Clinton Foundation, to which the foundation directed $100,000 in 2009 and $10,000 in 2010. The smallest, a $7 foundation gift to the Boy Scouts that same year, appeared to benefit Trump's family.