Your Living Trust & Estate Plan by Harvey J. Platt

Author:Harvey J. Platt
Language: eng
Format: epub
Publisher: Allworth
Published: 2013-01-01T00:00:00+00:00

Spendthrift Clause

The trust should also contain a provision preventing the beneficiary from pledging or encumbering the trust assets, thus preventing any creditor, including the state, from acquiring the assets in the trust. This is referred to as a spendthrift clause, and it is a valuable safeguard in the event that a beneficiary incurs significant debts.

Sprinkling Benefit Clause

The trust can provide the trustees with the ability to sprinkle or spray the benefits of the trust (income and principal) to other members of the family (siblings) or to organizations or persons providing services to the beneficiary. Such a clause would state:

The grantor further authorizes the trustees, at their sole and absolute discretion, to pay or apply any income not so paid or applied to or for the benefit of a beneficiary, and/or members of his or her immediate family, to or for the benefit of the siblings of the beneficiary, per stirpes, for their support, maintenance, and care (and the children of the siblings if any sibling should not be living at such time); such payments or applications may be made in such amounts and proportions, without any obligations to make equal payments or applications, as the trustees shall, in their sole and absolute discretion determine, from time to time, to or for any facility, the beneficiary may be residing in and/or to any organization where the beneficiary may be a client or a participant in any program(s) sponsored by them, as the trustees shall determine, for the general uses of such facility and/or organization at such time or times, as shall be determined by the trustees, at their sole and absolute discretion. Any income not so paid over or applied as aforesaid shall be accumulated and added to the principal of the trust at least annually and thereafter held as a part thereof.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.