Can you withdraw monies from a trust fund before you have reached the designated age specified by the deceased?

Question

In the case of financial hardship, can you withdraw monies from a trust fund before you have reached the designated age specified by the deceased?

Thomas Edward Gates · Answer

No.

Jayne Sebby · Answer

Probably yes, if you can prove the need is crucial, that the resulting hardship will cause significant harm, and that there are no other sources to provide for funding.  The trustee will make those determinations.  If you disagree with his or her conclusion,  you can petition the appropriate court to release the funds.

Gerald Bagazinski · Answer

The ability to withdraw money from a trust depends on the terms of the trust and whether the trustee is willing to authorize the withdraw. If the trustee is uncooperative, you can ask the probate court to supervise the trust and review whether the trustees decision to not pay the funds on a discretionary basis.

Eric Lewis · Answer

Depends on the language of the trust and the ability to invade the trust for maintenance and support.

Charles Perry · Answer

If the trust does not provide for a distribution for financial   hardship, or the trustee refuses to exercise any discretion he or she   may have for this type of distribution, then the only way to obtain   such a distribution is through court order.  The beneficiary does not   have an automatic right of distribution simply because of some sort of   financial hardship.

Edward Olson · Answer

The trustee has all the powers set forth in the trust document.      Beneficiaries can request withdrawal of funds.  However, most trustees have discretion (that is, they have authority to make decisions on their own) and trustees are limited to taking the actions allowed under the trust document.      Contact an attorney for more specific instructions and a review of the trust documents.

Jay Moreland · Answer

Generally when the trust fund is set up there are rules that apply to it. If the rules allow early withdrawal based on financial hardship, you might be able to withdraw funds early. Otherwise you probably won't be able to do so before the specified age.

Richard Keyes · Answer

Have an attorney read the trust instrument for such hardships.  I have oftentimes seen such language in a trust instrument.  Otherwise, the early distribution can be done but there are steps to take so that it is done properly and there are no future legal consequences.

Leonard A. Kaanta · Answer

Not unless the the trust, allows the trustee do so.

John Jordan · Answer

It all relies upon how the test was set up.   The trust is its own entity and owns the funds at this point.  If there are provisions that the Trustee can take from the trust early then attempt to get funds pursuant to those provisions, if not then you'll have to wait.

Frances Headley · Answer

That depends entirely on the terms of the trust.  You should consult an estate planning/probate  attorney to review the documents and advise you.

Jeffrey Gottlieb · Answer

This is impossible to answer in the abstract.  The answer is going to depend on the specific terms of the trust.

Kenneth Gold · Answer

The trustee is in charge of distributing the funds. Many trusts, in addition to an age for distribution also allow the trustee discretion to make distributions in case of hardship etc. You really need to look at the trust language. It would also be possible absent such language for the trustee to petition the court for permission to make such a distribution.

Monica H. Donaldson Stewart · Answer

It depends on whether the trust provides for situations like that, or whether the trust gives the Trustee discretion to take that action.

Michael Yeksavich · Answer

The basic answer is NO.  However, there might be circumstances where a judge  would allow some withdrawal but do not be on it.

James Frederick · Answer

It depends on the trust terms. Most of the time, the answer would be no. Often, then trustee has discretion to deal with these issues, however, so I would not give up without at least reviewing the trust. There are very limited cases where you can go to court and ask that funds be released, but the court is usually extremely reluctant to do this, absent some fairly compelling evidence that the grantor would have intended this, (when the documents expressly provide otherwise).

Edward Armstrong · Answer

It all depends on what provisions in the trust instrument provide for.  Many times the trust document will include language which allows the trustee (not the beneficiary) to use his or her discretion to make payments from income or principal for certain defined contingencies such as health, education, support, medical emergencies and the like or to provide against certain emergencies which may arise brought about  accident, ill-health, affliction, misfortune, etc.  But the decision is the trustee's not the beneficiary's.

Paul Nidich · Answer

Only by approval of all beneficiaries under certain circumstances or by approval of the Probate Court.  You should hire an attorney to help with this, if you really need the money.  This is a tricky area, and you don't want to be charged with a crime.

Victor Waid · Answer

Not without a petition to court for an order allowing you to do so.

Dara J. Goldsmith · Answer

It depends upon what the trust document says.  If unsure, I suggest meeting with an attorney who can review the trust and advise you regarding the same.

Darin Christensen · Answer

It depends on the terms of the trust.

Eric Smith · Answer

The trustee may have the power to expend funds for hardship, but it depends on the terms of the trust.

Roman Aminov · Answer

You would need to know the terms of the trust. Without that, we can not answer that.

Michael Stafford · Answer

Under special circumstances money may be redrawn from a trust before reaching the designated age.  You may have to consult with an attorney to review the trust provisions and to determine your rights.

Carmen Marquez · Answer

That will depend on what the Trust says.  Sometimes you are allowed to borrow from your trust but on very limited cases.  The Trustee of your Trust should be able to tell you if they are allowed to give you an early withdrawal.  Many trust allow a trustee to give a beneficiary money for their health, education, maintenance and support.  However, the purpose of the trust is not to pay your debts.

John Brennan · Answer

I would have to see the provisions of the trust.

Edwin Fee · Answer

The trustee might have the discretion to make distributions prior to the specified age, but that will depend on what the trust document says.

Allen Hunsaker · Answer

The answer to your question is dependent upon the provisions of the trust agreement.  Most often, attorneys will draft the trust agreement to allow for the trustee of the trust to make discretionary distributions to a beneficiary for health, education, maintenance, or support prior to the age of distribution.  Therefore, the answer to your question is two-part -(1) if the trust agreement allows for it and (2) if the trustee of the trust decides to exercise his or her discretion in making a distribution.

Benjamin Gordon · Answer

Not unless the creator of the trust provided in the trust agreement that you would be allowed to.  The exact terms of when and how a beneficiary is entitled to receive distributions from a trust are limited to those established in the trust agreement.

Brian Haggerty · Answer

Some trusts will allow this; you need to read the particular language of the trust concerning the gift.

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Can you withdraw monies from a trust fund before you have reached the designated age specified by the deceased?

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