Creating a New Trust

**kemp** · 03-10-2011, 08:25 AM

My question involves estate proceedings in the state of: TX. What type of trust is needed to give the trustee this discretionary authority? Quote."Distributions to Family. The Trustee shall pay or apply such sums of income or principal from each beneficiary’s separate trust as in the Trustee’s discretion are necessary or advisable for that beneficiary’s health, education, support, and maintenance, or as any Corporate Trustee in its discretion determines to be in that beneficiary’s best interests. After being reasonably assured that the beneficiary has sufficient means for his or her continued support, the Trustee in its discretion also may pay any sums of income or principal that it deems necessary or advisable for the health, education, support, and maintenance of the beneficiary’s descendants, or as any Independent Trustee in its discretion determines to be in their best interests, either individually or collectively."

**Mr. Knowitall** · 03-11-2011, 02:44 PM

A simple trust? What are you trying to ask.

**mikectm2** · 03-14-2011, 12:29 PM

A Support Trust or Special Needs Trust? "Each beneficiary's seperate trust" -This sounds like several subtrusts of a Trust (called the administrative Trust). These Support Trusts are for the maintenance of the beneficiary BUT at some point in time, while the beneficiary is still living, the Trustee of the maintenance trust, can in his sole discretion determine that the beneficiary is 'good to go' for the rest of his Life? then can commence to distribute the principle to the beneficiary's Issue (decendents) BUT WAIT that's not right, but rather the Trustee can use the principle of this trust now for the support/maintenance of the beneficiaries decendents as well... interesting

These specifications should just be included in the terms of the Administrative Trust document.

what would occur in the beneficiary's Life that would cause him/her to no longer need the support of their Maintenance Trust?