A trust can be one of the most powerful estate planning tools when you have specific wishes for how you want your assets to be managed during your lifetime. In the process of creating a trust, it is your responsibility to name a trustee or the person who will be responsible for trust administration. A trustee has various rights and responsibilities when installed in this role.
A trustee can withdraw funds from a trust but there are specific rules that they need to follow when doing so. A trustee is eligible to use money from the trust to pay any third-party expenses. A creator of a trust may also include further circumstances about when a trustee can make additional withdrawals.
Trust funds can typically be used for things like taxes owed after the trust creator passes away, repaying any debts owed by the creator’s estate when that person passes away, expenses associated with any properties inside the trust such as property insurance or maintenance and repairs, burial and funeral expenses for a trust beneficiary or for the trust creator, and fees paid to professionals who are hired to assist with administrative tasks. Since a trustee has a fiduciary duty to uphold all state and federal laws as well as comply with the terms of a trust, it is very important to think carefully about the person that you name in this role before doing so.
Contact our Pasadena estate planning law office if you have more questions about setting up your own estate.
