Common trust provisions used throughout advanced trust planning. Search, filter by purpose, and see which trust structures commonly include each clause.
A spendthrift provision helps protect a beneficiary's interest from most voluntary or involuntary transfers. It generally restricts beneficiaries from assigning their interest and can help shield trust assets from many creditor claims, subject to applicable state law and recognized exceptions.
Protects trust assets from beneficiary creditors, prevents assignment of interests, and preserves wealth for intended beneficiaries.
Subject to state law exceptions. Certain creditors (e.g., IRS, child support) may still access trust assets. Does not protect against claims of the grantor's creditors in some jurisdictions.
A no-contest provision is intended to discourage beneficiaries from challenging the validity of a trust by providing that a beneficiary who unsuccessfully contests the trust may forfeit some or all of their interest, where enforceable under applicable state law.
Discourages frivolous trust litigation, preserves family harmony, and protects the grantor's intent from being overturned.
Enforceability varies by state. Some states require probable cause for forfeiture. May not deter well-founded challenges.
This clause gives the trustee discretion over when, how much, and under what circumstances distributions are made, consistent with the trust's terms. It can help protect beneficiaries and preserve trust assets while allowing the trustee to respond to changing circumstances.
Provides flexibility to respond to beneficiary needs, protects assets from beneficiary creditors, and allows trustee to adjust for changing circumstances.
Requires a trustworthy trustee. Beneficiaries have limited control over distributions. May create tension if trustee discretion is questioned.
This clause establishes a process for removing and replacing a trustee if they resign, become incapacitated, die, are unable to serve, or meet other removal criteria defined in the trust. A well-drafted clause helps provide continuity while preserving the trust's objectives.
Ensures continuity of trust administration, allows adaptation to changing circumstances, and provides a mechanism to address trustee underperformance.
Must be carefully drafted to avoid unintended tax consequences. Removal process must be clearly defined to prevent disputes.
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