Legal Question in Wills and Trusts in Ohio
Trustee's powers to give beneficiary access to trust
Our mom passed away 2 yrs. ago. Her revocable trust became irrevocable and divided the trust account into 4 equal shares for us 4 kids. The trust agreement paid 3 shares outright to me and 2 sisters. The 3rd sister's share (100K) remained in trust.
I as successor trustee, am to pay her $300/mo. as well as ''any amounts from interest and/or principal I deem necessary at my sole discretion for suitable support, maintenance, health, welfare, and any emergency or education.'' Mom made the original agreement in 1985, so I guess $300 sounded sufficient back then, but the interest alone more than covers these payments. My sister could die before ever having scratched the principal assets. The agreement does not stipulate an ending date for these payments, nor does it make provision, other than above, for giving my sister her money.
I know I can request that checks be sent to her for such ''emergencies,'' but I want her to benefit from her inheritance, and would actually just like to give her unhindered access (it's her money after all). Is this possible, and if so, how do I go about it. If not, what alternatives do I have. I would appreciate any information.
2 Answers from Attorneys
Re: Trustee's powers to give beneficiary access to trust
From your description is appears that you have the power to write a check to your sister for anything related to her "support, maintenance, health, welfare, and any emergency or education."
That's a very broad standard and would provide money for most purposes. If she were to have unhindered access, it would defeat the purpose of leaving it to her in trust, such as providing for creditor protection.
Is the problem that you don't want to take the time to manage the trust, or that you don't think you can give your sister money for some specific purpose?
Re: Trustee's powers to give beneficiary access to trust
There may be a possibility that you could increase your sister's monthly payout. It depends upon the powers granted to you as a fiduciary, whether this action would serve the trust purpose, whether there is a provision prohibiting altering the trust terms, and whether there would be legitimate challenges to the trust. An attorney should review the trust with you before you re-direct an action.
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