Once assets are inside an irrevocable trust, the trustee—not the person who created it—decides how the money is spent. But that discretion is not unlimited. What an irrevocable trust can pay for depends on two things: the trust document and the trustee’s legal duties.
Common, legitimate trust expenses
- Trust administration costs, including reasonable trustee compensation
- Legal, accounting, and tax-preparation fees for the trust
- Income taxes owed on income the trust earns
- Costs to maintain, insure, or repair property the trust owns
- Distributions to beneficiaries as the trust directs
The trust document comes first
Every irrevocable trust is different. Some give the trustee broad discretion; others limit spending to specific purposes like a beneficiary’s health, education, or support. The trustee’s first job is always to read and follow the trust’s terms.
Fiduciary duties set the guardrails
Under the Florida Trust Code, a trustee must act loyally, treat beneficiaries impartially, and manage assets prudently. That means trust funds cannot be used for the trustee’s personal benefit or spent in ways that stray from the trust’s purpose. When a payment is a close call, a trustee should document the reasoning—and often check with an attorney—to avoid a breach of duty.