Can a beneficiary legally demand their trust money if the money is
allocated to run a business?
Q.
Re: income distribution from a family trust - if a distribution
is made to a beneficiary, but no actual funds leave the trust fund
because the money is required to carry on the business, can they
legally demand that money down the track?
A.
Your accountant would be able to explain the way it works to you
but if no money is paid out the amount usually sits in the books as
a loan by the trust to the beneficiary. If this is the case the
beneficiary is entitiled to ask for repayment of that loan
Each week financial advisor Noel Whittaker answers your
questions.
