Q: I have an irrevocable trust I would like to gain access to. Is there any legal way to do so.
I am the beneficiary of an irrevocable trust that my father left. The terms are pretty simple. I get 4% a year from the trust, plush 18k/yr for medical, at the banks discretion. The trust began at a bank that has since switched companies 3 times and is now Huntington Bank. When I have asked in the past if I can use MY money for certain things, the reply has always been no. I would like to pay off my mortgage (130k) rather than pay for the next 27 years at 4.75% interest. Is there any way I can get control over the money?
You can use one of the several companies (some more reputable than others) that will buy an annuity or other 'stream of payments' like you receive from this trust at a 'discount' and pay you cash up front. This will likely turn out to be MORE Than 5% interest you're paying on your mortgage.
You can use OTHER money anticipating this income stream to pay down debt.
You cannot, unless there is something in the trust document that you don't disclose here go after THIS money.
Without seeing the exact text of the trust it is impossible to determine if there are ways to go after this, but the question YOU need to ask is why did your father put these 'strings' on the money? Bear in mind that because the trust holds the funds, you have the right to an income stream but this is not 'your money' as you say. It is the trust's asset, and the trust agreement controls how it is used and distributed.
Seek local legal representation to review the trust terms and determine what, if anything, can be modified.
-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.
I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.