Moving Trust Assets

My sister is trustee for an Irrevocable trust from one of our Aunts who passed away. The trust specifically states that $75,000 must remain in the trust to generate income for another relative of ours. When that relative passes away, then the $75,000 is to be distributed in equal shares to my sister and myself.

My sister would like to move the $75,000 from the trust into her name to reduce paperwork and to not have to deal with the emotional burden of the trust. She will ensure that the income will still be paid to the beneficiary. Can she do this?

Only a trust attorney can tell you whether or not she could do this. Check out a book about irrevocable trusts at the library and do the research yourself--you may see your question answered there.

I would think that this is a highly suspicious trick--she is trying to move it into her name so that she can get access to spending it on herself. Unless she can furnish a more detailed explanation of how the paperwork would be reduced, and the explanation about emotional burden doesn't ring true, if she can't show documentation on paper of exactly how and when the income would still be paid to the beneficiary, then you would be a fool to let her get away with this. Another factor is that it depends on the language of the trust how much leeway/authority she would have to do something like that--it seems highly irregular.

If possible you need to try to get your hands on an original copy of the trust document. Since you are a beneficiary, you can request a copy of it.

DANDY DON

I have a copy of the original trust. The article which specifies that $75,000 remain in the trust does not specifically override the article allowing her to sell, distribute, or transfer any or all assets of the trust. Unless this is considered an implied override. Not sure.

Also, what is to stop her from just doing this and what recourse would I have if she does move all assets to her name?

This is a Florida trust.

These are questions that only a trust attorney can answer for you, and not too many of those look at this website.