You’ve set up an irrevocable trust as part of your estate plan, and now you’re wondering when a trustee can actually withdraw the money from it. There are strict rules surrounding trusts, and managing one is like having a full-time job. Here’s some more information on when trustees are allowed to take money out.
Withdrawing From a Trust
When and what a trustee can withdraw from the irrevocable trust is determined by the rules of the trust that you set up your estate planning lawyer. But in general, a trustee can use the money in the trust when third-party expenses need to be covered. They cannot just decide to take out money for personal use.
What Expenses Can Be Paid for Using the Trust Money?
Some examples of expenses that a trustee may be able to pay for with the trust money include the following:
- Funeral expenses for you
- Making repairs on your property in the trust
- Paying your debts
- Making distributions to trust beneficiaries according to your wishes
- Hiring professionals to help with administrative tasks
- Making investments for the trust
Before withdrawing anything from a trust, it’s crucial that the trustee knows the guidelines of the trust. They may want to reach out to an estate planning lawyer just to make sure they’re doing everything correctly.
Keep in mind that if a trustee wants to borrow money from a trust, this may not be allowed. Additionally, if the trust money is used for personal purposes, this could be considered misconduct and the trustee might be removed.
Contact Legacy Law Group
If you need assistance with a trust, you can contact the estate planning attorneys at Legacy Law Group in Eastern Washington, Spokane Valley, and Spokane itself. Get in touch with us at (509) 315-8087.