Designing and Administering Trust Distribution Mechanisms
The ultimate purpose of all trusts is to provide financial benefits to those fortunate souls who are the beneficiaries. There is almost an infinite number of ways by which those benefits may be transmitted, each with its own direct dispositive and tax consequences. Depending on a beneficiary's circumstances, the most appropriate means for making distributions to him or her may be quite simple or strikingly complex.
In this program, we will explore:
- Mandatory distributions
- Discretionary distribution schemes having broad standards and narrow standards
- Benchmarks for distributions including income, principal, unitrust amounts and annuities
- Loans to beneficiaries.