Distribution provisions are the most essential provisions of trust instruments – and risk lurks everywhere.
If a trustee has unbounded discretion, he or she risks a "general power of appointment," which would cause the trust's assets to be taxable to the holder of the power of appointment. But distribution standards – especially for "standard of living" or "emergencies" – are inherently susceptible to multiple interpretations and dispute, and potentially to litigation.
Ultimately, planning and drafting these provisions is an exercise in risk management and tradeoffs.
This program provides a real world guide to planning and drafting distribution provisions in trust instruments, including the tradeoffs and risks.
- Risks of discretionary distributions – power of appointment, taxable inclusion, litigation
- Cost/benefit of heavily detailed v. general distribution provisions
- Ascertainable standards – health, education, maintenance, and support (HEMs)
- Drafting sole and absolute discretion, emergencies, best interests, and standard of living
- Role of fiduciary duties in making distribution decisions
- Tax considerations when making distributions
DETAILS
Phone/Audio
Tuesday, January 16, 2024
1:00–2:00 PM
SPEAKERS
- Daniel L. Daniels, Wiggin and Dana LLP, Greenwich, CT
PRODUCED
January 16, 2024
APPROVED CREDIT
North Carolina: 1.00 MCLE Hour
PROGRAM PRICING
See pricing below.
