Legal Question in Wills and Trusts in California
Trusts and Custodial Accounts
I am a trustee for a trust set up for my kids by their grandparents. The grandparents have passed away. The trust is set up for the trust to pay educational cost or to give them the proceeds when they are over 21. The funds have been divided into separate accounts for each beneficiary.
I am filing the trust income taxes. I am thinking about setting up custodial accounts for each beneficiary and liqudatin the trust so I do have to do the extra admistrative trust work.
It seems like the custodial account would work in the same way the trust does. Is there any reason I should not move transfer everything from the trust into custodial accounts?
1 Answer from Attorneys
Re: Trusts and Custodial Accounts
It depends on the terms of the trust. If it allows you broad powers as trustee, then you may be able to do that. However, the trust became irrevocable at the time of passing, so you are limited to what you can do by the terms outlined in the trust itself. Without reading the trust, it is difficult to give much more of a difinative answer.
If you would like me to review the trust in confidentiality, please feel free to contact me at the email provided by LawGuru or through our firm's website at PasadenaEstatePlanning.com.
-Scott
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
