What are a trustee’s rights to withdraw money from a trust?
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What are a trustee’s rights to withdraw money from a trust?
The trust states that my step-dad can use the money for his health, maintenance and support taking in consideration any other sources of support both principal and income. My 2 brothers and I are the beneficiaries. My step-dad is also the trustee. He takes out money every month; 1 month he took out $50,000 to pay his taxes. He has at least 1 M of his own money. Since he has his own funds, can he keep getting out what ever he wants?He told us he could but that doesn’t sound right.
Asked on September 24, 2011 under Estate Planning, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the trustee is also the beneficiary under the trust, he or she is held to an even high degree of care as the fiduciary for the other beneficiaries regarding how trust assets are distributed. With respect to trust distribution to your step-father as a beneficiary by him as the trustee, you need to carefully read the language of the trust regarding how trust assets are to be distributed in that its terms and conditions set forth the obligations owed by the trustee to other beneficiaries with respect to how trust assets are to be distributedin general.
The best way to resolve your question concerning the rights of your step-father to withdraw money from the trust where you are one of its beneficiaries is to consult with a trust attorney and allow him or her to review the trust at issue and all addendums.
Good luck.
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