Can members of a irrevocable trust gift themselves money throughout the year?
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Can members of a irrevocable trust gift themselves money throughout the year?
Our mother is in a rest-home with dementia. She cannot speak, write, or understand anything. My 3 siblings and I are the members of the trust containing her money. Can we gift ourselves each $10,000 a year and does it have to be paid back? We would like to be able to have some of the money before it is eaten up at $6,000.00 a month going to her rest home. I know this sounds cruel, but everything is going to the rest home and some of us are without jobs and cannot meet our mortgages. It would help a lot.
Asked on January 28, 2011 under Estate Planning, Wyoming
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
I am sorry for your situation all around. And I hate to have to throw this back in your lap but someone really needs to read the trust to let you know if what you are wishing to do is possible, although I have to say that I think it is probably not. Irrevocable trusts are set up to protect the assets or the beneficiaries thereof. And how they are written really determines what can and can not be done. The parties that usually wish to break them are the parties that made them. But your Mother as no capacity to do any of that given her mental state. If the trustee - who is the only one who can do anything here - has the power to distribute before the death of your Mother (unlikely) then the trust will so state. Good luck.
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