If the grantor has no income, can the grantor use the proceeds from renting the condo (owned by the trust) to support living expenses?
This could be arranged if it is done correctly. If the grantor has become a beneficiary, as discussed above, then it would simply be written into the trust minutes that the income to the trust will be distributed to that beneficiary. This should harmonize with however many units of beneficial interest were assigned to that beneficiary.
If the grantor has elected to have no officer role at all in the trust, the minute could still be written and authorized by the trustee to honor the wish of the grantor, to have that income paid to that person. After the grantor has signed the relinquishment document, he no longer has a role in the trust and therefore the trust cannot be held liable for any of the ex-grantor’s liabilities. But, the trust can certainly be authorized to pay out that rental income to the person.
If the client who pays the original trust setup fees and has the trust formed wishes to be the main executive trustee, then that individual can also have the trust authorized to cover his major expenses, such as mortgage, car payment, or salary, as compensation for trustee services. However, that person should not use the trust bank account willy nilly to directly pay his own miscellaneous expenses. It should be in the form of a straight salary to the trustee’s individual account, or a payment of that trustee’s major bills directly from the trust. Whatever arrangement is made, should be authorized by a written minute made a part of the trust.
If you have further questions about the details and mechanics of all this, it would be best to purchase the trust first, and then go into all those details with our trust writer in a one-on-one consultation.