Does the beneficiary of a revocable living trust have any right to the funds before the disbursement date?
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Does the beneficiary of a revocable living trust have any right to the funds before the disbursement date?
My parents established a revocable living trust for me at birth (19 years ago) with my mother as the trustee. I believe the trust is specifically set up for my education and all the money in it must be used for my schooling until I have graduated college and turned 30. Here’s the important part: my parents won’t let me use the trust funds to go to the college I want to go to. Do I have any right to that money if it’s going to my education? Can they really legally deny me tuition funding if the trust is for education?
Asked on September 7, 2011 under Estate Planning, New Hampshire
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your parents set up a trust for you as a revocable trust (as opposed to irrevocable) the trustees under the trust who presumably are your parents can change its terms at any time period. Additionally, depending upon the language of the revocable trust where you are its supposed beneficary, the trustees under it typically have the discretion to hold back moneys due a beneficiary if the trustees determine that the powers under the trust given them warrant no disbursement of moneys.
If you are a beneficiary under a trust, the moneys earmarked for you are a gift and not an entitlement. I suggest that you sit down with your parents to discuss the situation about your need for finances for your education in that as the trustees under the trust, your parents most likely are entitled to hold back funds for your eductation under this trust.
Good luck.
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