What are the basic provisions a protective trust should contain?
• Flexible powers and broad authority for the Trustee in management of assets, including the power to sell or rearrange assets, to disburse or withhold income and corpus • Discretion by the Trustee to make appropriate distributions • Designation of at least one alternate or successor Trustee • Waiver of a bond by the Trustee • Authorization for the Trustee to be paid • A spendthrift clause, which can prevent creditors of a beneficiary from obtaining the trust property prior to distribution to the beneficiary • Provisions providing for flexibility in distribution of Trust assets as unforeseen events arise after death • Authorization to receive property from other sources • Authorization to merge with other similar trusts to cut administrative fees • Termination provisions that let each beneficiary s trust end only when that beneficiary is ready
