A trust is a private legal contract between 2 or more celebrations, where a third party holds title to the trust property for the benefit of another. There are several types of trusts that have various functions, and the trust contract determines who has the authority to withdraw funds from the trust and for what purpose the funds might be used. Make sure you work with an educated San Diego Trust Attorney, such as the incredible Estate Planning Lawyer Steve Bliss!
Trustees Can Withdraw For Trust Use
Trust law differs from one state to another, but under no situations can a trustee withdraw funds from the trust for the personal use of the trustee. The trustee of any trust has a fiduciary obligation to follow the terms of the trust arrangement and to ensure paid out funds are not contrary to the purpose mentioned in the trust arrangement.The Law Firm Of Steven F. Bliss, Esq.
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Typical trust law determines that the trustee (or trustees) are the only parties that can pay out funds from a trust account.
Trust Grantors Can Also Withdraw
A grantor trust is an entity in which the individual establishing the trust keeps a current interest and control of the trust. The only way a necessary power of lawyer holder may withdraw funds from a grantor trust is if there is specific referral about the trust in the power of lawyer document that mentions funds can be withdrawn behalf of the trust grantor.