My mother has a living trust in Florida. She and my father each had a trust but he is deceased and she is trustee now. We understand she can only spend up to 5% of the trust value per year. Is that correct? And what happens if she spent more than that? Recently we think she spent more than 5% but for legitimate expenses - moving costs (a down payment on a preleasing agreement - she is moving to an independent living facility in an over 55 retirement community). My brother is worried because this downpayment may be over 5% of the trust worth and he is worried the trust will now be nullified. Also she wrote a check on the trust account for some tree trimming - getting her current home ready to be rented once she moves. We are wondering if this 5% includes both trusts (which would include family home, stock portfolio, and money market account in which case she'd be ok)? Or would this 5% pertain only to her part of the trust? Thanks
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