How to Access the Interest on a Living Trust for a Deceased Spouse
A living trust is an estate planning tool that allows a person to direct who will receive funds after his death. A married couple may have a revocable living trust where both are co-trustees. Upon the death of one trustee, the other assumes 100 percent control in most circumstances unless otherwise directed by the trust. An irrevocable trust may be established if the deceased was concerned over spending issues or other beneficiaries. Accessing interest is contingent on the determinations made in the trust.
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Instructions
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Read over the trust document to determine if it is a co-trust with both husband and wife as trustees or an irrevocable trust of some sort. A co-trust gives the surviving spouse complete access over trust funds to grow, spend or redistribute as desired.
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Contact the trustee if the trust is irrevocable. Ask the trustee what the provisions are for the surviving spouse to receive interest. For example, a trust that separates into two trusts upon the death of the first spouse may become an A/B Trust. Dad's half becomes an irrevocable trust and mom's half remains her own. In many of these trusts, dad's new irrevocable trust might allow mom to use the interest without accessing the principal removed from the estate.
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Obtain the proper form from the trustee to take the interest from the trust. Forms are not always required, but it is a good idea to create a paper trail in the event that any other beneficiaries question the use of funds. The trustee will notify the bank or securities firm to send interest payments to the trust, which is then distributed from the trust bank account to the surviving spouse.
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Tips & Warnings
If the trust doesn't allow access to the surviving spouse, there isn't much that can be done.
