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Tax Planning/distribution of irrevoc. trust before death


Are there certain condition where you can withdraw some funds out of the trust, realizing it is not a gift but taxable, if the trustee and grantor are in agreement?  An amount of $8000 or less to help supplement social security and disability of the beneficiaries./......

If the trust is irrevocable, then the trustees are obligated to operate within the terms that are specifically laid out in the trust document.

If the trustees do otherwise, they can be held personally liable if it becomes a fiscally unsound action.

Here is an example:

You are the beneficiary, you ask, beg, plead, whatever for the money, and they give it to you. You can immediately turn around and sue them for not following the terms of the trust. They would have to pay personally for whatever loss that occurred.

You could ask them for a loan. . . you could then sue them for making a risky loan if lending is not part of the plan that is laid out in the trust.

Just for the record, irrevocable trusts are almost never a good idea.  

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Richard Fritzler


I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.


Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at

National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute

Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.

I have been in the business of assisting business owners in reducing their taxes and liability for over 17 years. Providing retirement option that are not just tax deferred, and not limited to a "token" tax free contribution. Retirement plans that allow for total and complete access before you are 59.5 with no penalties

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