Why You Need a Reserve of Money in a Trust | Trust 101 Series | Lawvex

In a trust administration, a “reserve” is money that the trustee retains until certain conditions are met. The amount of money in the reserve is based on factors such as the value of the trust's assets and its beneficiaries' inheritance rights. Basically, a trustee should make sure that he or she has enough money in the reserve to cover any final expenses associated with distributing the trust property. In this video, Gary Winter, Managing Attorney at Lawvex discusses how to use the reserves and what types of scenarios you are likely to face in which you will need this reserve money. We hope this episode of our Trust 101 series lets you gain a better understanding of these topics. Stay tuned for other episodes! Save yourself from Legal Frustrations. https://lawvex.com/