Grandchild Trust with/without age Limit

Grandchild Trust with/without age Limit

An age limit which end management by the trustee is inserted in the Trust. What if drug abuse is in the way. Would removing the age limit for trustee management be a solution. If this is done and the mother a widow and trustee remarries, what are the fallouts of not having age control?


The facts are a bit unclear. But it sounds like a trust was set up for a child who now has a drug problem, but the trust is scheduled to end at a specified age and you're worried about the child getting the money and mis-using it (say to support a drug habit). Get to a lawyer. Many trusts have language that gives the trustee the right to withhold distributions, even indefinitely, from a beneficiary with a drug or similar problem. There might also be some options available under state law. Another option, but you'll need legal help, would be to set up a family investment company, such as a family limited partnership (FLP) and have the trustee invest trust assets in the FLP. This way, if the child/drug abuser gets or insists upon a distribution from the trust all he or she will get will be an FLP interest which won't be spendable. Trustees marriage should have no impact on any of this, but for some influence by the new spouse. See The Complete Book of Trusts and Starting Your Own Limited Liability Company both by John Wiley & Sons, Inc. and both written by Martin Shenkman.

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