Can a trustee withdraw money?
Yes, a trustee can withdraw money from a trust. The trustee is responsible for managing the trust assets and making sure that the trust is administered according to the terms of the trust document. Depending on the type of trust, the trustee may have the authority to withdraw money from the trust for certain purposes.
For example, a revocable trust allows the grantor (the person who created the trust) to withdraw money from the trust for any purpose. The grantor can also change the terms of the trust or revoke it altogether.
In an irrevocable trust, the trustee has more limited authority to withdraw money from the trust. Generally, the trustee can only withdraw money for the benefit of the trust beneficiaries. The trustee must also follow the terms of the trust document and any applicable state laws.
In addition, the trustee must be careful to avoid self-dealing or conflicts of interest. This means that the trustee cannot use trust funds for their own benefit or to benefit someone else who is related to the trustee.
Finally, the trustee must keep accurate records of all withdrawals from the trust. This includes documenting the purpose of the withdrawal, the amount withdrawn, and the date of the withdrawal. The trustee should also provide the beneficiaries with regular account statements so that they can monitor the trust’s activity.
Was this article helpful?73 Posted by: 👨 Joseph N. Lewis
