If they pull it out early does the trust company have to notify the place he owes restitution?

Unless he told the entity he injured that he was the beneficiary of a trust, they will not know and the trustee, who runs the trust, will probably have no knowledge. He can not withdraw the money unless the trust documents allow that. If it is a large sum, the people he owes money to may periodically ask about his financial status [that it is in his wife's name is irrelevant, it is his money and if he gives it to her it may be community property which is subject to his debts]. If he injured someone or some company, he should pay his obligations and not cheat someone out of the damages he has done. Obviously, being in prison did not fully reform him. Likely he will in the future be convicted of some other crime.