Submitted by yjlevg t3_1004w05 in personalfinance
wickedkittylitter t1_j2fn0rh wrote
You listed the grantors and trustee, but you failed to list who the beneficiary(ies) of the trust are. If you're a beneficiary and the trust document allows distributions for this reason or at will, you can do this. If your mother is the beneficiary, she would have to take the distribution and gift the money to you, though there won't be any gift tax. You need to be careful as a trustee to not abuse your powers. If you aren't a beneficiary and think you can distribute funds to yourself and consider this an investment, it's not and that could be an issue later.
yjlevg OP t1_j2frhrd wrote
I'm a beneficiary, along with my mother and my brothers. My mom and I have talked about this as part of a potential retirement plan for her where if I want to upgrade to a bigger house in 5 years or so and she can rent out her large house (which she owns outright) as her retirement income.
> that could be an issue later
Who has potential to make this an issue? My mom given that she is the only remaining grantor?
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