How to write a letter requesting money from a trust

Written by mary k. hogan
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How to write a letter requesting money from a trust
An essential part of requesting money from a trust is knowing how to write to the trustee. (Thomas Northcut/Photodisc/Getty Images)

An essential part of requesting money from a trust is knowing how to write to the trustee and what information to include. A trust is a legal arrangement wherein an individual, the truster, transfers assets into the name of a separate taxable entity, the trust, that is overseen and protected by a third-party individual or corporation, called the trustee, for the ultimate benefit of one or more individuals or charities, who are known as the beneficiaries. Both the truster and the beneficiaries may be entitled to monies from the trust.

Skill level:
Moderate

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Instructions

  1. 1

    Determine if you, as truster, have the power to withdraw funds from the trust during your lifetime as long as you have mental capacity. If you have reserved that power, the trust is revocable.

  2. 2

    Write the current date at the top left-hand side of a clean sheet of writing paper. Write the name of the trustee, his address, city, state, and zip code about one-quarter inch below the date. Reference the name of your trust, and your trust account number if applicable. Write a salutation followed by a colon, for example, "Dear Mr. Jones:"

  3. 3

    Identify yourself as the truster of the revocable trust in the body of the letter. State your purpose for requesting money from your trust. Include the dollar amount of your request and the date by which you would like the funds. Provide instructions regarding how you would like the funds sent to you; for example, "Mail a check to my home address, on file," or "Transfer the funds to my ABC Bank current account," followed by the account number.

  4. 4

    Write a closing for the letter, such as "Sincerely," or "Best regards." Sign your name. Your signature is a critical part of the withdrawal process, since the trust agreement usually requires that the trustee get the request in writing, signed by the truster. If you are using a computer and printing your letter, sign your name in pen after the closing. Provide your contact information below your signature; this can include your address, phone number, or e-mail address.

  5. 5

    Address the envelope to the trustee, including your return address, and fold and insert the letter in the envelope. Stamp and mail the letter.

  1. 1

    Obtain a copy of the trust agreement. A trust typically becomes irrevocable, meaning it cannot be altered, when the truster dies. Since a trust is a private document, the trustee may only send you the title page, the pages directly affecting you, and the signature page.

  2. 2

    Write the current date at the top left-hand side of a clean sheet of writing paper. Write the name of the trustee, his address, city, state, and zip code about one-quarter inch below the date. Reference the name of the irrevocable trust, and the trust account number if applicable. Write a salutation followed by a colon.

  3. 3

    Identify yourself as a beneficiary of the irrevocable trust in the body of the letter. State that you are requesting money from the trust, and the reason for the request. Include supporting documentation. For example, if you are requesting money to pay medical bills, enclose copies of the bills. If you are requesting payment of tuition, include all relevant course information.

  4. 4

    Include the dollar amount of your request and the date by which you would like the funds. Provide instructions regarding how you would like the funds sent to you, or provide the name and address of another payee, such as a college or hospital.

  5. 5

    Write a closing for the letter, sign your name, and provide your contact information. Your signature is a critical part of the withdrawal process, since the trust agreement usually requires that the trustee get the request in writing, signed by the beneficiary. If you are using a computer and printing your letter, sign your name in pen after the closing. Address the envelope to the trustee, including your return address, fold and insert the letter in the envelope, and stamp and mail the letter.

Tips and warnings

  • If the trust is irrevocable, be prepared to provide financial information to the trustee, such as your past three years' income tax return.
  • The distribution terms of each trust differ, and the trustee will determine whether or not your request qualifies under the terms of this trust.
  • Consult an accountant regarding the taxability of trust distributions in your situation.

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