4. Protective Trusts Flashcards
1
Q
What is the purpose of a discretionary trust?
A
Trustee may apply/withhold payments to Beneficiary
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)
3
Q
What is the purpose of a support trust?
A
Trustee must pay necessary income/principal to Beneficiary
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
5
Q
How may creditors reach beneficiaries’ interests?
A
Send notice of attachment to Trustee to pay directly
NO spendthrift provision
