
A trust is a legal arrangement in which a grantor can transfer the ownership of their property to a trustee. And once this money is transferred, you may be wondering how and when your trustee can withdraw it from the trust. Follow along to find out what circumstances allow a trustee to withdraw money from a trust and how a proficient Broward County trust lawyer at The Probate Lawyers can guide you through this.
As a trustee, can I withdraw money from a trust?
Simply put, a trustee may be obliged to withdraw money from a trust whenever third-party expenses, related to the estate, arise. Examples of different circumstances that warrant this action are as follows:
- A trustee may use funds from the trust to cover the grantor’s funeral and burial expenses upon their passing.
- A trustee may use funds from the trust to cover the grantor’s outstanding taxes and debts upon their passing.
- A trustee may use funds from the trust to cover the grantor’s necessary property expenses, such as home repairs, home insurance, property taxes, and more.
- A trustee may use funds from the trust to cover the fees of professionals who assisted in the execution of the grantor’s estate.
- A trustee may use funds from the trust to cover the fees of certain investments, if applicable.
- A trustee may use funds from the trust to cover the financial support for designated beneficiaries.
With that being said, the best way to allow a trustee to appropriately access money from a trust is to establish a bank account just for them to have access to. They may then use this account to write checks for third-party expenses, schedule ACH payments, make wire transfers to designated beneficiaries, and lastly, withdraw money.
Can I act as my own trustee?
Technically, yes, you may act as your own trustee. You may consider this option if you want to maintain some level of control over the property you transferred into the trust. Ultimately, this may mean that you can withdraw your own money from your own trust. And unlike a third-party trustee, you may withdraw money as you see fit, and not necessarily need a reason; like doing so for third-party expenses, investments, or distributions. In other words, you may not have to worry about breaching a fiduciary duty like a third-party trustee would.
Importantly, this may only be possible when establishing a revocable trust. This is because this kind of trust allows you to modify or terminate its terms throughout your lifetime. What’s more, you must not forget to designate one or more successor trustees to take over if you become incapacitated or upon your passing.
You must not hesitate to learn your responsibility as a trustee. As soon as you can, pick up the phone and call a talented Broward County estate lawyer. Someone at The Probate Lawyers will be happy to answer.