4. Protective Trusts Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

What is the purpose of a discretionary trust?

A

Trustee may apply/withhold payments to Beneficiary

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2
Q

What are Beneficiary’s rights in a discretionary trust?

A

NOT assign interest

NOT interfere with Trustee’s discretion (unless Trustee abuses his power => Court may intervene)

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3
Q

What is the purpose of a support trust?

A

Trustee must pay necessary income/principal to Beneficiary

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4
Q

What are Beneficiary’s rights in a support trust?

A

NOT assign interest

Receive support for own needs
- Determined by Settlor’s intent as to another beneficiary’s other resources

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5
Q

How may creditors reach beneficiaries’ interests?

A

Send notice of attachment to Trustee to pay directly

NO spendthrift provision

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