Trust Distribution in Elder Law Planning and Administration: Standards and Challenges

The use of trusts is an integral part of elder law planning. To handle these trusts properly for clients, counsel must know when trusts are appropriate, understand and define trust distribution standards, and how to draft first- and third-party trusts to protect public benefits and administer the trusts.

If drafted correctly, trust distribution standards may restrict access to trust income and assets. However, a discretionary standard within a trust doesn't necessarily mean that the trust is a protected discretionary trust, and courts can reach different conclusions when interpreting trust provisions. For support trusts, the level of protection needed for Medicaid purposes is nonexistent.

In addition to navigating issues presented by distribution standards, counsel must also understand tax consequences and the impact on a client's public benefits when utilizing trusts.

Listen as our panel of elder law practitioners discusses critical points regarding distribution standards, key considerations and drafting provisions for counsel, and the challenges for beneficiaries, choice of trustee, and key administration issues.