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JSully

NYS Trust - rights of the trustee

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My mother set up an educational trust for my nieces and nephews. The will specifies what the funds can be used for. If not used for educational purposes, funds may be transferred to the children when they turn 30.  What discretion do I have as trustee, to transfer funds within the parameters set forth in the will ? For example if the funds are requested for educational purposes, can I withhold funds because, in my discretion, I think its not a worthy educational purpose?  Thanks.

 

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A will and a trust are two different things.

 

The trust that, presumably, contains the assets specifies the duties of the trustee which are, in turn, regulated by the state's trust code.

 

As trustee, you'll have no discretion to do anything beyond what the trust instructs you to do.

 

If the terms of the trust don't give you the discretion to decide if the educational pursuit is worthy, then you hand over the money if the kid wants to go to manicurist school or AC repair school.

 

Is your mother still alive?

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It sounds as if the will sets up and contains the terms of a testamentary trust.  Without knowing the exact language in the will defining the trust it is impossible to predict the discretion of the trustee.  Please quote the exact language of the trust.

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13 hours ago, JSully said:

My mother set up an educational trust for my nieces and nephews. The will specifies what the funds can be used for.

 

What is the relationship between the trust and the will?  Is this a testamentary trust (i.e., a trust that is created by the terms of a will)?

 

 

13 hours ago, JSully said:

What discretion do I have as trustee, to transfer funds within the parameters set forth in the will ? For example if the funds are requested for educational purposes, can I withhold funds because, in my discretion, I think its not a worthy educational purpose?

 

How could we possibly know?  We haven't read the trust instrument (or the will), and you didn't identify the state whose laws govern the trust.  If there is significant money involved, you would, IMO, be foolish not to retain an attorney to assist you in your capacity as trustee.  It's not a good DIY project.

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