If I’m the beneficiary of my grandfather’s living Trust, can some of the money be invested instead of sitting in a bank account not getting any interest?

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If I’m the beneficiary of my grandfather’s living Trust, can some of the money be invested instead of sitting in a bank account not getting any interest?

I do not have access to the money in the account until I am 35 years old (I am currently 27) unless it to be used for education. I want to know if I can request that some of the money be invested so as to get interest? My uncle (the beneficiary) has the account in a CD. I have been approved for a home loan to purchase a condo and want to invest some of my money from the trust in the property I want to buy. Is there any way my uncle can allow me to use some of the trust money for this? I believe it would be investing the money to gain more value than it would just sitting in CD account. Could my uncle get into any legal trouble for doing this?

Asked on June 5, 2013 under Estate Planning, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Trustees are governed by two things: the Trust document and the Trust laws in the state in which the trust is located. If the Trust document limits the Power of your Uncle to invade the trust (to distribute the assets) then he can not give you the money for buying the condo.  It sounds as if he has the funds in a CD as a safe investment, which may be his prerogative. He is not obligated to have them in say the stock market, which is volatile and could result in a loss of the trust funds. If you want to figure out how to structure this idea seek help from an attorney who can read the documents in question in conjunction with state law.  Good luck.


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