Can a trustee withhold funds from a trust?

Second, the Trustee has the right to withhold a reasonable reserve of Trust assets to pay for anticipated Trust expenses, including taxes, debts, trustee and accounting fees, and other costs of administration. A reasonable reserve will vary depending on the size of the Trust estate and the anticipated expenses.

Why did trustees withhold information from beneficiaries?

Those three grandchildren sought information from the trustees on the basis of the obligation owed by trustees to beneficiaries to account to them for their stewardship. They sought information dealing with the distributions of income to other beneficiaries but not to them and in connection with various dealings and usage relating to the farm land.

Can a trustee take money out of a trust?

A trust beneficiary can bring legal action against the trustee in court to obtain a full trust accounting, force the trustee to make a distribution, or even have the trustee removed, which can get costly if an estate attorney is involved. Learn more about when a trustee can withdraw money from a trust.

Can a trust trustee keep a reasonable reserve?

A reasonable reserve will vary depending on the size of the Trust estate and the anticipated expenses. In most cases, however, the Trustee should be able to distribute most Trust assets to you even while retaining a reasonable reserve.

What can a trustee do if there is a trust?

Fifth, the Trustee may retain enough Trust assets to seek court approval of an accounting of trust activities. That means the Trustee can hire an accountant to prepare a Trust accounting, and then a lawyer to prepare an accounting report petition and file it with the court.

Can a trust contest be a final distribution?

This would be known as a Trust Contest, and there are very limited avenues for a beneficiary to do this, as it may risk forfeiting their inheritance. In addition, the Trustee should seek to have a waiver and release signed prior to making the actual final distributions.