Can You Withdraw Cash from a Trust Account?
The short answer to the question, “Can you withdraw cash from a trust account?” is Yes, but there are some caveats.
- If you have created a revocable trust, not an irrevocable one, and are the trustee of the trust, you can add and remove assets of the trust, A revocable trust allows you to make amendments to your trust and it also allows you to keep control of your assets. You will relinquish ownership and control of your estate with an irrevocable trust.
- If you have created a revocable trust and have appointed someone else as trustee, you will have to request the cash withdrawal from the person you appointed as the trustee. However, the trustee has a fiduciary duty to administer the trust for your benefit while you are alive.
- When you create a revocable trust and name someone else as the trustee, it can be helpful to specifically state in your trust that you are allowed to request cash withdrawals as you see fit.
- Your assets must be transferred into the trust in order for them to be withdrawn. There may be fees associated with transferring or removing certain assets, such as real estate titles, so be aware of those costs.
- If you want your beneficiaries to have the ability to withdraw funds of a trust for their benefit, this must be specifically stated in your trust.
The bottom line is that if you feel you may need or want to withdraw funds from your trust in the future, the document must be drafted in such a manner to allow these types of transactions. Because this can be a complex process with many options to consider, it is recommended that you hire a Denver trust attorney to help you understand your options.
To start the conversation with an experienced trust lawyer in Denver, contact the estate planning lawyers at The Brown Law Firm, LLC. Contact us at (303) 339-3750 or send us a message online to meet with our experts.