55-1-40. Language resulting in classification of distribution interest.

167 words·~1 min read·/sd/title-55/chapter-55-1/55-1-40

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:

(1)Mandatory interest:

(a)"All income shall be distributed to (named beneficiary)"; or

(b)"One hundred thousand dollars a year shall be distributed to (named beneficiary)";

(2)Support interest:

(a)"The trustee shall make distributions for health, education, maintenance, and support";

(3)Discretionary interest:

(a)"The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";

(b)"The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support";

(c)"The trustee may make distributions for health, education, maintenance, and support";

(d)"The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them";

(e)"The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare.