Last Will And Testament (Page 4 of 11) in pdf

Any net income not distributed to the trust beneficiaries will be added to the principal of the

applicable trust share and reinvested for future distribution.

When a trust beneficiary is entitled to distribution of the balance of the beneficiary’s trust share in

accordance with the trust provisions set forth above, the trustee shall distribute to such trust beneficiary the

remaining principal and accumulated net income of his trust share, less the beneficiary’s pro rata share of

unpaid trust administration expenses.

If a trust beneficiary survives me but predeceases the complete distribution of his or her trust, such

trust will be terminated forthwith and the remaining principal balance and any accumulated but undistributed

net income will be distributed to the deceased beneficiary’s surviving heirs at law.

Comment [TB11]: Another issue that could be

important (and a provision inserted by default with

no option to modify): If a child dies before receiving

If a trustee determines, in the trustee’s discretion, that the corpus of a trust share is of insufficient

all of the property in her trust, the remainder passes

value to economically administer, the trustee may terminate the trust in accordance with applicable state law

to her "heirs." Usually, people would like to keep

things "in the family" and would provide for

and distribute the accrued and undistributed net income and remaining principal balance of the trust share to

property passing to descendants. Using "heirs" here

the trust beneficiary, outright and free of trust.

means that the trust would pass to the child's

surviving spouse first, which may not be what the

testator wants (to benefit her sons-in-law?) .

CREDIT SHELTER TRUST

My spouse has the right to disclaim all or a portion of any property or other interests left to him or

her under this Will, provided that my spouse do so within the qualifying time limit for the disclaimer

pursuant to Section 2518 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”),

or a corresponding provision in any successor statute. Anything in the “Alternate Remainder Beneficiaries”

clause to the contrary notwithstanding, if my spouse makes any such disclaimer, all such disclaimed property

or interests will be distributed in trust to Richard L. Smith, as trustee of The Mary G. Smith Credit Shelter

Trust.

During my spouse’s lifetime, the trustee shall distribute net income and principal of the Credit

Shelter Trust in accordance with the following provisions:

Comment [TB12]: The testator might want to

a. The trustee shall pay to my spouse or apply for his or her benefit all of the net income of the

have the children as beneficiaries of the credit

trust, with such payments to be made at regular intervals as determined in the trustee’s sole

shelter trust, but that is not an option (the

discretion, except that the trustee shall make payments at least annually.

provisions of this trust are fixed).

Comment [TB13]: Distributing all income from a

b. The trustee may also pay to or apply for the benefit of my spouse from time to time so much

credit shelter trust is not generally the best choice,

but there is no option here for any other

of the principal as the trustee determines is necessary for my spouse’s health, education,

distribution standard.

maintenance, and support.

c. In making any such discretionary distributions, the trustee may take into consideration all

relevant circumstances, including but not limited to my spouse’s accustomed standard of

living and other assets and sources of income or support available to my spouse and known

to the trustee.

d. On the death of my spouse, the remaining Credit Shelter Trust assets will be distributed in

accordance with the provisions of this Will, as if I had died on the date of my spouse’s death

Comment [TB14]: If a child is not living upon

and my spouse had not survived me.

the surviving spouse's death, the problem noted

above of there being no alternate disposition

GENERAL TRUST PROVISIONS

appears again, and could require court clarification.

Page 4 of my Last Will and Testament

___________________

(Signature)

Last Will And Testament Page 4

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