Drafting Tips for Efficient Estate Administration

Consider the effort necessary to determine the distribution standard established by the following provision: I hereby authorize and empower my Trustees in my Trustees' sole and absolute discretion at any time and from time to time to pay, disburse, and distribute from the principal of any of th...

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Bibliographic Details
Published in:Estate Planning 2017-09, Vol.44 (9), p.44
Main Author: Kirk, Bryan D
Format: Article
Language:English
Subjects:
Advisors
Attorneys
Beneficiaries
Documents
Estate administration
Estate planning
Estate taxes
Estates
Fiduciaries
Inheritance taxes
Law
Reading
State court decisions
Tax returns
Trustees
Trusts
Wills
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Summary:Consider the effort necessary to determine the distribution standard established by the following provision: I hereby authorize and empower my Trustees in my Trustees' sole and absolute discretion at any time and from time to time to pay, disburse, and distribute from the principal of any of the trust estates created under this my Last Will and Testament (even to the point of completely exhausting the same) such amounts as my Trustees in my Trustees' discretion deem advisable to provide adequately and properly for the support and care of the current income beneficiary or beneficiaries thereof and/or his or her issue, including, but not by way of limitation, expenses incurred by reason of illness, disability, or education · · ·. Trustee may divide any trust created hereun- der into two separate trusts so that the federal generation-skipping transfer ("GST") tax inclusion ratio (as defined in Chapter 13 of the Internal Revenue Code) of each trust is either one or zero. Trustee may, without court approval, allocate any exemption from federal GST tax to any property with respect to which trustor is the transferor for GST tax purposes. Notwithstanding anything to the contrary in this instrument, the current beneficiary of any trust with a GST tax inclusion ratio of one shall have a testamentary power to appoint the property of such trust to such persons or organizations, including said beneficiary's estate and its creditors, as said beneficiary may designate in said beneficiary's will specifically referring to this power of appointment.
ISSN:0094-1794