Well-Being Trusts: Beyond Distribution Standards

While trusts have always been created to protect beneficiaries, more can be done to help beneficiaries benefit from the wealth that is bequeathed not actually “to” them, but for them. So-called “Well-Being Trusts” are consistent with a growing trend to be more inclusive of what can – and perhaps should – be provided for beneficiaries of trusts, beyond just making distributions.

Delaware, as it often does, has lead the charge on this new approach to trust drafting and administration by enacting a new Well-Being Trust statue. It is an “opt in” provision that drafters can incorporate into new trust documents and include in existing trusts via decanting or non-judicial modification. In this webinar, the speakers will discuss the Delaware Well-Being Trust statute and the various issues it raises (not the least of which is potential trustee liability). Other important issues include:

• Income tax considerations, such as whether payment for programs for beneficiaries qualifies as a trust administrative expense or carries out DNI

• Using a letter of wishes

• Custom provisions practitioners might include

• Conflicts that could arise in some situations, such as if a beneficiary is addicted to drugs

• The need for mechanisms to change trustees and/or the terms of the trust.

Although everyone wants more wealth, history demonstrates that excess wealth can actually be an inhibitor of creativity and personal fulfillment. A Well-Being Trust can empower beneficiaries rather than restricting them, allowing trustees to focus on helping beneficiaries flourish in different ways. Regardless of the type of trust or jurisdiction involved, the ideas behind the Well Being Trust can help transform trust practice and administration.

Speakers: Todd Flubacher, Abigail O’Connor, Jonathan Blattmachr, and Martin Shenkman.