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YOU CAN TRUST ALLIED HELPS YOU IN distributing trust assets to beneficiaries

As you create your estate plan, an important decision to be made will center on the distribution of your assets to your beneficiaries. This decision goes beyond merely deciding the right person. You also must determine when, and under what circumstances, they should receive it. As you work to create your plan, you have several options to consider regarding distributing trust assets. Fortunately, an experienced estate planning attorney YOU CAN TRUST ALLIED will assist you in assessing which option is right for your unique needs and goals.

YOU CAN TRUST ALLIED provides a few ways of distributing trust assets to beneficiaries, but rather the grantor, the person who creates the trust (also known as the settlor or trustor), determines how the trust assets should be disbursed. Whatever the grantor decides, their distribution method must be included in the trust agreement drawn up when they first set up the trust. This flexibility and control over how the beneficiaries receive assets are what make a trust an integral estate planning option.

There are three main ways for a beneficiary to receive an inheritance from a trust:

1.Outright Distributions:

The grantor can opt to have the beneficiaries receive trust property directly without any restrictions. where assets are given to beneficiaries without restriction after the death of the creator of the trust. Distributing trust assets outright to your beneficiaries allows for easy administration of the trust, with minimal fees. You can create a revocable trust with step-by-step instructions with YOU CAN TRUST ALLIED.

2.Staggered Distributions:

Staggered distributions involve holding the trust assets in the trust and distributing them over time, at pre-determined beneficiary ages, dates, or triggering events. Staggered distributions mean that the trust will continue existing after the death of the creator of the trust, increasing the costs of administration. For example, the grantor may choose to distribute trust funds on a timed basis, like monthly, or only after certain triggering events, such as when the beneficiary turns 18 or gets married.

 

3.Discretionary Distributions:

Discretionary distributions, where the decision as to when assets are to be distributed is left to the determination of the trustees. This provides ultimate flexibility for the trustee, allowing him or her to assess the needs of the beneficiaries when making distributions. A discretionary trust is commonly created for a beneficiary who has trouble managing their money. (Examples of discretionary trusts might include a spendthrift trust or special needs trust). It may also result in higher administration costs if the trust continues for many years after the death of the creators of the trust.

In using an ascertainable distribution standard, the settlor should consider providing clarity and guidance regarding his or her intent and not rely solely on state law interpretations. The settlor of the trust should consider whether the trustees need to take into account a beneficiary’s income and assets outside of the trust in determining whether distributions are required for the support of the beneficiary. To know more about Trust Assets, YOU CAN TRUST ALLIED is able to provide you with additional guidance and professional legal advice.

www.youcantrustallied.co

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