Can the trustees of a Trust use capital in it to pay care fees?

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Can the trustees of a Trust use capital in it to pay care fees?

My mother’s Will set up a Trust whereby her residual estate, circa 300k was to be invested so that the income produced provides for day to day living expenses for my father as long as he survives and upon his death the estate value falls to her 3 children as beneficiaries, 2 of whom have also been named as trustees of the Trust. Most of the capital has been invested in an ISA to produce the dividend income for our father and circa 40k has been kept in cash. My father unfortunately now requires high levels of care and support. Can we, subject to all beneficiaries agreeing, use the

capital funds within the Trust to pay towards this care and support.

Asked on July 13, 2017 under Estate Planning, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It depends entirely on what the document or instruments setting up/creating the trust say. The trust is governed by the documents which create it; if they give you discretion to do this, you can, but not otherwise--you cannot do anything not permitted by the terms of the trust. So the first thing you should do is review the documents which created the trust.


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