TuckerAllen recently hosted a virtual town hall that provided a detailed overview of trust distributions.
The town hall was hosted by moderator Scott Trout and featured a panel of TuckerAllen estate planning attorneys who reviewed the most important information concerning trust distribution options.
What is a trust distribution?
A trust distribution is the process of paying out your money to your children or other beneficiaries after you have passed on.
“It’s basically the different ways you get the money to your kids from the trustee after you’ve passed,” said TuckerAllen senior estate planning attorney Missy Shands Manning.
What are the different types of trust distributions?
The panel reviewed each of the different types of trust distributions and the important differences between each.
- Outright trust distribution: A beneficiary’s share of the trust is distributed as a one-time lump sum amount after they have reached the age of inheritance. This is the most straightforward method of distribution.
- Periodic trust distribution: The trustee will be required to distribute a predetermined portion of the trust at predetermined times.
- Sprinkling trust distribution: Allows the trustee to have discretion in distributing funds according to beneficiaries’ needs before the youngest beneficiary turns a certain age. This distribution is most common in families with multiple minor children.
- Distribution in share trusts: Your beneficiary’s share of your assets is kept in trust forever. This distribution plan is great for protecting sensitive family members or protecting against outside influences.
If you have any questions about trust distribution options or any other topics related to estate planning or elder law, contact TuckerAllen.