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Trusts • Transfer of Interests
TRUSTS#019
Legal Definition
In a support trust, a trustee is required to use only so much of the income or principal as is necessary for the beneficiary's health, support, maintenance, and education.
Plain English Explanation
Other trusts you've learned about enable the trustee (the person managing the trust) to use their best judgment as to what amount of money to peel away from the trust and give to the beneficiary. With a support trust, the trustee has less freedom to make such decisions and is required to provide exactly whatever amount is necessary to support the beneficiary's health, maintenance, safety, and education.
In other words, if Bob is the beneficiary of a support trust and his cost of living is $2,000 per month while attending school that costs $1,000 per month, the trustee would be required to provide bob with $3,000 per month. Not $2,999, and not $3,001.
In other words, if Bob is the beneficiary of a support trust and his cost of living is $2,000 per month while attending school that costs $1,000 per month, the trustee would be required to provide bob with $3,000 per month. Not $2,999, and not $3,001.
Related Concepts
Are discretionary trusts involuntarily alienable?
Are discretionary trusts voluntarily alienable?
Are spendthrift trusts involuntarily alienable?
Are spendthrift trusts voluntarily alienable?
Are support trusts involuntarily alienable?
Are support trusts voluntarily alienable?
What is a discretionary trust?
What is a self-settled spendthrift trust and how do most jurisdictions deal with them?
What is a spendthrift trust?
