The different ways that money is allowed to be paid out of the trust will be clearly stated in the trust deed.

Beneficiaries may be paid money out of the trust or use its assets for private purposes through trust distributions or formal loans between the beneficiary and the trust, if allowed. A beneficiary can also be an employee of a trust and in this situation may be paid money from the trust through salary, wages or fringe benefits, such as using the business car.

There are different reporting and record-keeping requirements for each of these different circumstances.

Make sure you know the record keeping requirements and tax laws that affect how money can be paid from your particular trust. Mistakes can be costly. 

If you or another beneficiary earn personal services income (PSI) through your trust, this may change how you take money from your trust.