| The most popular question….read on:
CLIENT QUESTION:
I have an irrevocable trust with you for over seven years. Can my trust now pay for my granddaughter’s dance class expenses? Would this affect the look-back period? Thank you.
MY RESPONSE:
I have been inundated with some form of this question this year and I have answered it many times. Let’s nail down this point again:
The trustee of the trust can pay out money to any of the ultimate beneficiaries for whatever reason. To do so, the trustee must obtain your written consent which must state whether this gift from the trust should or should not be an advancement of their inheritance. If your granddaughter is not currently a beneficiary of your trust, then the trust can give the money directly to your child (her mother or father). If this is not something you want to do, you have the right to add your granddaughter as a beneficiary so you can bypass your child. You have choices, but we usually do whatever is easiest.
Furthermore, there would be no effect on the look-back because nothing is being added by you to the trust. |
