Trustees releasing money from a trust?
Discussion
I plan to get legal advice but would appreciate any input for my prior education.
My wife and I are trustees for the money left to our nephews via a will that says we are the trustees and the boys are the beneficiaries with no stipulations on when we should release the money from the trust. Both boys have issues which means giving them a large lump of money when they’re 18 is probably a bad idea.
Are we obligated to give them the money when they’re 18 or can we continue to manage things with their input and release funds when we are satisfied it’s in their interest?
My wife and I are trustees for the money left to our nephews via a will that says we are the trustees and the boys are the beneficiaries with no stipulations on when we should release the money from the trust. Both boys have issues which means giving them a large lump of money when they’re 18 is probably a bad idea.
Are we obligated to give them the money when they’re 18 or can we continue to manage things with their input and release funds when we are satisfied it’s in their interest?
There are many different flavours of trust and it's impossible to answer your question without knowing which one you've got.
If the trust was well written you may find the Trustees have power to vary the terms of the trust.
You need proper, paid-for legal advice. The usual starting point is to go back to the solicitors who drafted the trust since they should be familiar with the terms.
How much ££ is in the trust? That will affect your attitude to legal costs. Who is doing the trust's annual tax return and updating its Trust Registration?
If the trust was well written you may find the Trustees have power to vary the terms of the trust.
You need proper, paid-for legal advice. The usual starting point is to go back to the solicitors who drafted the trust since they should be familiar with the terms.
How much ££ is in the trust? That will affect your attitude to legal costs. Who is doing the trust's annual tax return and updating its Trust Registration?
The trust was set up based upon the wishes of the will which did not specify an age to release the money. I believe it likely that we as the trustees can decide timing / amounts. We ll clearly need legsl advice to ensure everything is done properly but having ideas before consulting a lawyer is always useful in my experience!
That's definitely where you need to start - a better unerstanding of the terms of the trust.
Possibilities include: Held in trust for, say, three people and the Trustees have full discretion over what to pay out to whom, and when.
Or,
Held in trust for three people in equal shares to which they become absolutely entitled on reaching their 18th birthday.
As you can see these two examples would work very differently from each other in your situation.
Possibilities include: Held in trust for, say, three people and the Trustees have full discretion over what to pay out to whom, and when.
Or,
Held in trust for three people in equal shares to which they become absolutely entitled on reaching their 18th birthday.
As you can see these two examples would work very differently from each other in your situation.
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